Bitcoin ETF Outflows Begin…Is 'Sell in May' Becoming a Reality?

▲ BlackRock Bitcoin/ChatGPT generated image ©

As institutional funds begin to exit rapidly, signs of cracks are appearing in Bitcoin's (BTC) upward trend.

According to crypto media outlet Finbold on April 29 (local time), BlackRock's iShares Bitcoin Trust (IBIT) recently led selling pressure from U.S. institutional investors, reversing the overall trend for spot Bitcoin ETFs. After attracting over $2 billion in net inflows for 13 consecutive trading days, a net outflow of $112.25 million occurred on April 28 alone.

IBIT currently holds approximately 812,276 BTC, valued at about $62 billion. In the same vein, the entire U.S. spot Bitcoin ETF market also ended its 9-day consecutive inflow streak, recording a total net outflow of $352.86 million over two days from April 27 to 28. The total assets under management amount to approximately $100.39 billion.

Indicators reflecting market sentiment are also rapidly deteriorating. According to CoinGlass data, the Coinbase Bitcoin Premium Index has turned negative, indicating that U.S. institutional investors are engaging in selling rather than buying. Typically, a negative index is interpreted as a sign of weakening U.S. demand.

Spot market liquidity has also visibly contracted. According to Glassnode, Bitcoin spot trading volume across all exchanges has fallen to its lowest level since October 2023. This, coupled with decreased institutional demand, indicates a weakening of overall buying momentum in the market.

Consequently, Bitcoin, which attempted an upward rally in early April, is now facing pressure for a trend reversal. The market is discussing the possibility of a re-enactment of the traditional 'Sell in May and go away' phenomenon, with greater weight placed on the potential for further short-term correction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*