Bitcoin Recovers to $80,000 Despite Fund Outflows... Can ETF Outflows Now Be Ignored?

▲ Bitcoin (BTC)/AI generated image

Bitcoin (BTC) has recovered to $80,000 again despite large-scale ETF outflows. Benzinga reported on May 14 (local time) that while $635.2 million flowed out of Bitcoin ETFs on Wednesday, Thursday's price action could weaken warnings of a drop to $70,000.

According to Benzinga, these outflows represent the largest single-day outflow since January 29, when approximately $818 million exited Bitcoin ETFs. Weekly outflows increased to $841.2 million, making it highly likely that ETFs will record their first weekly net loss after a six-week consecutive upward trend that saw approximately $3.4 billion in net inflows.

By ETF, BlackRock's iBIT led the losses with approximately $285 million in outflows. ARK 21Shares' ARKB and Fidelity's FBTC also saw outflows of $177 million and $133.2 million, respectively. In contrast, Morgan Stanley's MSBT recorded no outflows on Wednesday, has had no outflows since its launch on April 8, and has accumulated approximately $256 million to date.

On-chain metrics pointed to potential support near $70,000. CryptoQuant analysts cited increased profit-taking, high unrealized gains, and weakening US spot demand as signs of slowing upward momentum. Bitcoin tested $82,400, near its 200-day moving average, after a 37% rebound from its April low. This range was mentioned as a price level that acted as resistance in past bear market rallies.

According to on-chain data, if a deeper correction occurs, the $70,000 level was suggested as support. CryptoQuant explained that this price level was a key zone that transitioned from resistance to support in past bear markets and represents the average acquisition cost for short-term investors. An analysis also suggested that at this level, the unrealized profit ratio approaches zero, reducing the incentive for further selling.

Capital inflows improved but did not meet the criteria for a bull market expansion phase. The 30-day net position change in realized market capitalization recovered to $2.8 billion per month, indicating improved capital inflows. However, this still fell short of the over $10 billion per month seen during past bull market expansion phases.

Glassnode analysts explained that this indicator rapidly accelerated from around $2 billion per month to $10 billion per month at the beginning of major rallies from 2023 to 2025. While current figures are positive, they are not yet strong enough compared to those past benchmarks.

Bitcoin fell to $78,885 on Thursday before recovering to $80,000. The price moved along the Keltner Channel midline of $79,150, which acted as dynamic support during the recovery period from April to May. Immediate overhead resistance is at $82,977, while $75,324 is suggested as a worst-case support level on the downside.

*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.*