Bitcoin ETFs Lose $2.7 Billion in a Week as Fed Turns Bearish on US GDP

Bitcoin ETFs Saw Record Outflows
Bitcoin ETFs experienced unprecedented outflows this week, totaling $2.7 billion, indicating a looming bear market. Corporate Bitcoin holders are suffering, and liquidations are on the rise across the crypto industry.

Economic Sentiment

The Federal Reserve Bank of Atlanta has projected a 1.5% decline in the US GDP for Q1 2025, further contributing to economic pessimism.

Is Bitcoin Heading for a Bear Market?

The US spot Bitcoin ETF market, initially thriving, is now facing significant outflows. This week, the outflow reached nearly $1 billion, raising concerns among institutional investors.

Over the past week, Bitcoin ETFs have reported net outflows of $2.7 billion, the largest since March 2024, signaling bearish tendencies.

The fear of a bear market is palpable, impacting even corporate Bitcoin holders. Strategy (formerly MicroStrategy) invested around $2 billion in Bitcoin but has seen its stock price plummet 57% since last November. Metaplanet and Tesla are also experiencing significant declines.

Although Bitcoin seems particularly vulnerable, there is a notable surge in liquidations across the crypto sector, with nearly $1 billion liquidated in the last 24 hours. Traders are showing Extreme Fear, reminiscent of the 2022 FTX collapse.

Some industry figures maintain a more optimistic perspective. Michael Saylor advised the community against panic-selling, humorously suggesting, “sell a kidney if you must, but keep the Bitcoin.”

Arthur Hayes, former CEO of BitMEX, has revised his BTC prediction, suggesting it will drop initially but eventually rebound. He noted, “We are making lower lows in this current wave… Hold on to your butts!” via social media.

Dark clouds are gathering in the economic landscape, with market corrections appearing inevitable. The Federal Reserve’s forecast of a declining GDP only underscores the bearish sentiment affecting Bitcoin and the broader market.