- Spot Bitcoin ETFs experienced $227.9 million in outflows on March 5, marking the largest single-day exit in nearly three weeks.
- Despite the recent outflows, the 14-day netflow trend for ETFs has turned higher, indicating easing selling pressure according to Glassnode.
- Experts are divided on the immediate outlook but cite signs of institutional re-accumulation and advocate for a longer-term perspective.
Spot Bitcoin exchange-traded funds recorded their worst day in three weeks on March 5, shedding $227.9 million in outflows, according to Farside Investors data. This significant withdrawal coincided with Bitcoin’s price pulling back to under $70,000, a retreat from its recent high.
However, a closer look reveals a more nuanced picture beneath the surface volatility. Crypto analytics firm Glassnode noted in a Telegram post that the 14-day ETF netflow trend has turned higher, signaling “easing distribution pressure.”
Consequently, this divergence tests whether ETF flows are still the primary market driver. Other factors like on-chain accumulation and geopolitical hedging may be gaining influence.
Experts largely advise looking beyond single-day data points. Andri Fauzan Adziima, research lead at Bitrue, told Decrypt that multi-day signals should be trusted over daily blips.
“The shift from deeply negative to mildly positive and stabilizing territory signals early institutional re-accumulation,” Adziima explained. Justin d’Anethan of Arctic Digital echoed this, suggesting the weekly outflow trend has potentially reversed.
Nick Ruck from LVRG Research also pointed to “early signs of institutional re-accumulation.” He tempered this outlook by noting other key factors are also playing larger roles in the market.
Meanwhile, prediction market Myriad users are almost evenly split on Bitcoin’s next major move. They are betting on whether it will climb to $84,000 or fall to $55,000.
From a long-term perspective, analysts suggest current levels are a good starting point for accumulation. Aleksandr Nechaev, partner at Funders VC, emphasized, “It’s a long game with Bitcoin.”
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