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

▲ BlackRock Bitcoin/ChatGPT generated image ©

Cracks are beginning to appear in Bitcoin's (BTC) upward trend as institutional funds start to rapidly flow out.

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 roughly $62 billion. In the same trend, all U.S. spot Bitcoin ETFs also ended their 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 are 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 noticeably contracted. According to Glassnode, the total 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 recurrence of the traditional 'sell in May and go away' trend, with short-term additional correction possibilities being weighted.

*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.*