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The Economic Times
The Economic Times
Shreya Biswas

Bitcoin crash warning? $2.8 billion ETF outflows shake crypto market as BTC USD falls below $72,000 today - here's what traders need to know

Bitcoin BTC USD crash prediction : Investor confidence in the crypto market is continuing to weaken as billions of dollars leave spot Bitcoin ETFs and capital shifts toward the booming US stock market.

Since May 15, Bitcoin ETFs have recorded nine consecutive trading days of outflows, losing a combined $2.8 billion, according to SoSoValue data, reported Decrypt. The largest single-day withdrawal came on Wednesday, when investors pulled out $733.43 million. BlackRock’s IBIT alone accounted for $527.84 million of that total.

Bitcoin ETF Outflows Continue to Accelerate

The pace of withdrawals has intensified over the past few weeks. Bitcoin ETFs first saw roughly $1 billion in outflows in mid-May. That number rose to $1.26 billion the following week, while this week’s total has already reached $1.30 billion.

Galaxy Research analysts described Wednesday’s outflows as the worst of the year and the fifth worst daily outflow ever recorded for Bitcoin ETFs, as per the report. The analysts also noted that year-to-date ETF flows have now turned negative.

The recent withdrawals are being viewed as more than routine profit-taking or temporary portfolio adjustments. Reports suggest the outflows reflect a broader change in investor positioning and outlook toward crypto markets.

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AI Stocks and US Markets Pull Investor Attention Away From Crypto

The growing excitement around artificial intelligence and the strong performance of US equities appear to be attracting investor attention away from digital assets.

CoinShares linked the latest ETF outflows partly to the ongoing US-Iran war in the Middle East. At the same time, only a small group of major technology and AI-related companies continue driving gains in the S&P 500, helping the index climb to a fresh all-time high of 7,568 on Friday, as per the Decrypt report.

Micron also became one of the biggest examples of the AI-driven rally. After receiving an endorsement from US President Trump on May 22, the semiconductor company surged 207%. Its market capitalization jumped from roughly $850 billion on May 21 to nearly $1 trillion within five days, marking a 15% increase.

The strong momentum in stocks has contrasted sharply with crypto market weakness.

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Bitcoin (BTC USD) Price Falls Below $72,000

While traditional markets continue rising, Bitcoin has struggled to recover after failing to break above the $82,000 level.

Bitcoin is now trading below $72,000, revisiting a six-week low. According to CoinGecko data, the cryptocurrency has fallen roughly 5.4% over both the past week and the past month.

On-Chain Data Points to Weakening Demand

Data from CryptoQuant also reflects growing weakness in market participation.

Whale wallets holding between 1,000 and 10,000 BTC are shrinking year-over-year at the fastest pace seen in 2026, mirroring trends seen during the 2022 bear market, as per the Decrypt report.

Meanwhile, dolphin wallets holding between 100 and 1,000 BTC have slowed below their 365-day moving average, a level historically associated with prolonged price corrections.

Long-term holder supply has climbed to a record 15.8 million BTC. However, the report stated that this trend reflects a lack of new buyers entering the market rather than aggressive accumulation.

Short-term holder supply has also declined sharply, falling from 6.4 million BTC in December to around 4.2 million BTC today. About 900,000 BTC of that drop has been linked to Coinbase reserves aging into long-term holdings.

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FAQs

Why are Bitcoin ETFs seeing large outflows?

Bitcoin ETFs are experiencing heavy withdrawals as investor sentiment toward crypto weakens and capital shifts toward other markets.

How much money has left Bitcoin ETFs recently?

Spot Bitcoin ETFs have lost a total of $2.8 billion over nine consecutive days of outflows since May 15.

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