Bitcoin ETFs See $768 Million Outflow In March As Price Slips, Crowd Sentiment Turns Cautious - Invesco G

March was a high-action month for Bitcoin (BTC/USD) and its related spot ETFs, with the cryptocurrency facing major setbacks.

The price of Bitcoin started going south right after touching a record price of $109,114 on Jan. 20. By the end of March, the price had dropped by 23% from its peak. More specifically, the price of Bitcoin dropped by 2.3% in March.

Also Read: Bitcoin Is In A Mini Bear Market, Says 10x Research

This bearish sentiment was reflected in the ETF market. U.S. spot Bitcoin ETFs saw investors withdrawing $767.9 million in March, the second-largest amount on record. Still, if it’s any consolation, the March outflow number was better than February’s staggering $3.56 billion outage, which left the crypto world reeling.

Investor sentiment has been quite responsive to the market mood. Statistics from Santiment reveal that Bitcoin’s price action has tended to be the opposite of the prevailing crowd sentiments. A case in point is that bullish sentiments on March 23 and March 25 resulted in price corrections, while on March 29, bearishness saw short-lived gains. Santiment thinks that the price of Bitcoin still has room for one more correction before trying to break through the $100,000 mark.

Technical indicators also suggest some more trouble on the cards. Bitcoin is poised to signal the dreaded ‘death cross’ sell signal, when the 50-day moving average drops below the 200-day moving average, typically signaling future potential losses., according to Business Insider.

Comparative Asset Performance

While Bitcoin and its ETFs have experienced setbacks, other assets have remained strong. Gold, for example, surged past $3,000 per ounce in mid-March and climbed around 38% in the last year, as of March 30.

Wider economic conditions have also contributed to influencing market dynamics. The expectation of President Donald Trump‘s “Liberation Day” announcement on April 2, in which new reciprocal tariffs are likely to be announced, has contributed to market uncertainty. Such trade policies would exacerbate recession fears and put further pressure on risk assets, including Bitcoin.

ETF Inflows Amidst Outflows

Amid the broad trend of outflows, there were pockets of positive movement within the crypto ETF world. On March 27, U.S. spot Bitcoin ETFs had a combined daily net inflow of $89 million, per SoSoValue data. Fidelity Wise Origin Bitcoin Fund (BATS:FBTC) topped with $97.14 million in inflows, and BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) witnessed nearly $4 million.

On the other hand, the Invesco Galaxy Bitcoin ETF (BATS:BTCO) and WisdomTree Bitcoin Fund (BATS:BTCW) witnessed outflows of nearly $7 million and $5 million, respectively. These hybrid movements highlight the subtle and changing investor sentiment in the crypto market.

March underscored the unpredictability and intricacy of the crypto market. Although massive Bitcoin ETF outflows and price drops speak of dominant bearish moods, isolated cases of inflows and the behavior of other assets such as gold reveal a varied and prudent investment environment.

Read Next:

Grayscale Moves To Mainstream Crypto With ETF Filings For Avalanche, Top Tokens

Photo: Shutterstock

BTCOInvesco Galaxy Bitcoin ETF

$63.25-%

Overview

BTCWWisdomTree Bitcoin Fund

$67.240.07%

FBTCFidelity Wise Origin Bitcoin Fund

$55.30-0.09%

IBITiShares Bitcoin Trust

$36.00-0.11%

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