One of the dominant forces influencing Bitcoin price behaviour is the flow of capital into and out of spot Bitcoin exchange-traded funds (ETFs). Over recent weeks, the flows have turned negative: for the week ending November 3, spot Bitcoin ETFs recorded net outflows of about $799 million, led by major funds. The largest single product saw a retreat of roughly $403 million, while others each faced sizable redemptions. These outflows correspond to a decline in institutional buying pressure and contribute to a thinning of liquidity in the market.
In contrast, several weeks earlier, we saw comparatively large inflows. In a single day, the market saw inflows of approximately $876 million, highlighting its current volatility and dependence on flows. As Bitcoin’s issuance and supply growth remain constrained (thanks, in part, to the 2024 halving event), each incremental increase in demand has a magnified effect.
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