Bitcoin ETF withdrawals exceed $465 million as market outlook shifts negative.

Spot Bitcoin exchange-traded funds (ETFs) in the United States have witnessed back-to-back days of net outflows as the overall sentiment in the crypto market has turned negative.

Per SoSoValue data, the 12 US spot Bitcoin ETFs saw a net outflow of $103.61 million on Tuesday, September 23, extending a two-day trend that has seen nearly $467 million leave these funds.

Fidelity’s FBTC accounted for a significant portion of the outflows, with investors withdrawing $75.56 million. Following that, ARK 21Shares’ ARKB and Bitwise’s BITB funds experienced outflows of $27.85 million and $12.76 million, respectively.

On the other hand, Invesco’s BTCO helped offset some of the losses by attracting $10.02 million from investors, while BlackRock’s IBIT added modestly with $2.5 million in inflows. The remaining seven Bitcoin ETFs saw no inflows on that day.

The daily trading volume for the 12 Bitcoin investment products stood at $3.16 billion on Tuesday, experiencing a slight decrease from the previous day.

It is important to note that despite the recent outflows from Bitcoin funds, they still boast over $3 billion in net inflows for September, significantly outperforming August, which saw over $750 million withdrawn by investors.

The recent withdrawals from spot Bitcoin funds coincided with Bitcoin’s dip to multi-week lows following one of the largest liquidation events in the crypto market this year. On Monday, over $1.7 billion was liquidated, predominantly from long positions.

Bitcoin struggled under selling pressure, dropping below the $115,000 mark and falling to as low as $111,369 during Tuesday’s trading session.

This bearish trend was largely driven by dampened expectations of a clear easing cycle from the United States Federal Reserve, particularly after it reduced rates the prior week. However, optimism surrounding the rate cut quickly diminished as Fed officials adopted a hawkish tone, indicating fewer interest rate cuts in 2025 than anticipated.

Fed Chair Jerome Powell emphasized that future cuts would be “data dependent,” leaving traders uncertain and reducing the market’s risk appetite.

“The outflows from Bitcoin ETFs this week reflect last week’s Federal Reserve rate cut, which could indicate an impending recession. Persistent risks of inflation and rising unemployment are fostering a risk-off environment among institutions,” commented Kadan Stadelmann, Chief Technology Officer at Komodo, to crypto.news.

Nevertheless, Stadelmann minimized the broader impact, suggesting that the recent outflows are “profit-taking rather than a fundamental issue for Bitcoin’s price,” indicating that long-term investor confidence remains strong.

Bitcoin’s Downside Risks Persist

Currently, Bitcoin needs to maintain its position above $110k to avert further declines, according to Georgii Verbitskii, founder of TYMIO.

“At present, the market appears weak, as BTC isn’t rebounding after the recent decrease. If it continues to decline, that’s a negative indicator. However, a gradual move back toward $118K could signal a good entry point for long positions, potentially resuming a broader uptrend by the year’s end.”

Georgii Verbitskii, founder of TYMIO.

Social media sentiment is currently predominantly bearish, as shared by Santiment. Notably, calls for a BTC drop toward the $70K–$100K range have overshadowed bullish predictions for a rise towards $130K–$160K.

As of the latest update, Bitcoin (BTC) was trading at $112,639, marking a 0.3% decrease over the past 24 hours.