Bitcoin Price Drops 17% After Spot ETFs See Historic 59,351 BTC Exodus

Key Insights

• Spot Bitcoin ETFs saw a record 13-day outflow streak, losing 59,351 BTC ($4.3B).
• Bitcoin fell 17% in a week, dropping below $60,000.
• BlackRock’s IBIT led withdrawals, including a $528M outflow day.
• The streak was the longest since the launch of Bitcoin ETFs in 2024.

Bitcoin price faced pressure this week as spot Bitcoin exchange-traded funds recorded a record withdrawal streak. U.S. spot Bitcoin funds posted 13 consecutive trading sessions of net outflows between May 15 and June 3, with investors withdrawing about 59,351 Bitcoin worth more than $4.3 billion.

The withdrawals coincided with a sharp market decline. Bitcoin fell below $60,000 for the first time since Oct. 10, 2024, extending losses across the broader crypto market.

Bitcoin dropped about 17% during the previous seven days and traded at its lowest level in several months.

Historic Bitcoin Spot ETF Outflows

The latest data highlight a record-setting run in the ETF market. The 13-day outflow streak is the longest on record since spot Bitcoin ETFs launched in January 2024.

Each trading session from mid-May to early June saw more redemptions than purchases. By the end of June 3, the funds had shed 59,351 BTC (about $4.33 billion) in total. This eclipsed any previous outflow sequence in the young ETF’s history.

Most of the selling pressure came from the largest Bitcoin fund. BlackRock’s iShares Bitcoin Trust (ticker: IBIT) drove much of the outflow.

On May 28, IBIT recorded a net outflow of $527.84 million – its second-biggest single-day redemption since inception. That one-day withdrawal was nearly as large as IBIT’s record $528.3 million outflow on Jan. 30, 2024.

Industry observers note that these redemptions were initiated by ETF investors across brokerages – not by BlackRock itself – and reflect institutional sentiment toward Bitcoin.

The outflow pattern marked a sharp reversal of sentiment. In April, Bitcoin ETFs saw net inflows of about $1.97 billion.

By contrast, the mid-May to early-June period saw $4.33 billion exit. Galaxy Research noted that in dollar terms, the selling over the 13-day run was the heaviest ever recorded for these funds.

In Bitcoin terms, it set new records for withdrawals over 7, 10, and 20 days. ETF analysts like Bloomberg’s Eric Balchunas view the outflows as wiping out year-to-date gains in ETF flows and shifting the funds back into negative territory.

Bitcoin Price Reaction

The torrent of ETF redemptions coincided with a major price drop for Bitcoin. On June 5, bitcoin briefly fell below $60,000 on Binance and Coinbase, its first move under that level since Oct. 10, 2024.

The decline pushed the token through a level closely watched by traders. It also extended losses that had built up over the week.

Bitcoin was down more than 17% in the seven days to June 5, touching its weakest point since late 2024.

Broader market conditions also fed into the move. Strong U.S. jobs data reinforced expectations that interest rates could remain higher for longer. That typically reduces appetite for risk assets.

At the same time, continued ETF outflows added to selling pressure across the crypto market.

The Bitcoin price decline has renewed debate on whether the downturn is a temporary “sentiment shock” or the start of a deeper correction.

The Bitcoin price decline renewed concerns about institutional demand. CoinShares reported more than $5.8 billion in crypto investment product outflows during the previous month, while spot Bitcoin ETFs recorded their longest withdrawal streak since launch. Investors now watch whether ETF flows stabilize or continue weighing on market sentiment.

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