- Bitcoin ETF outflows hit $1.21B as network activity and retail growth surge.
- Price breaks trendline while miners sell and valuation metrics sharply deteriorate.
Bitcoin [BTC] ETF products witnessed their largest capital flight in nearly three months, with $1.21 billion exiting in just three trading days.
This rare outflow marks the first time since mid-March that net withdrawals from Bitcoin ETFs have crossed the billion-dollar mark.
Such consistent outflows from institutional products typically reflect deteriorating confidence among large investors.
Naturally, the timing rattled markets.
The exit came just as multiple valuation models weakened, and miner behavior began shifting, potentially adding fresh sell pressure to an already fragile structure.
Are network fundamentals strong enough to offset ETF fear?
Despite institutional retreat, on-chain data revealed a resurgence in Bitcoin’s network activity.
Active Addresses rose 22.66% over the past week, while New Addresses climbed 11.94%.
Moreover, Zero Balance Addresses soared 53.41%, likely indicating wallet reactivation or increased churn. These spikes suggest renewed retail interest or increased market rotation.
However, such behavioral signals may not carry enough weight to counterbalance the implications of large-scale ETF redemptions unless they lead to consistent demand pressure at higher prices.
Source: IntoTheBlock
Do weakening BTC valuation metrics signal a price top?
On top of that, long-view valuation signals dimmed.
Both NVT Golden Cross and Stock-to-Flow Ratio have posted sharp declines, raising concerns about Bitcoin’s current valuation structure.
The NVT Golden Cross dropped 53%, pointing to low transaction volume relative to market cap.
Simultaneously, the S2F Ratio plunged 50%, eroding confidence in Bitcoin’s long-term scarcity model.
While these drops don’t confirm immediate downside, they often precede local tops, especially when investor conviction weakens across multiple metrics.
Source: CryptoQuant
Is smart money quietly exiting while retail holds?
Zooming in, UTXO data showed that 98.56% of outputs remain in profit, a historically bullish sign.
However, the number of UTXOs in loss jumped 25.46% within the same period, showing new or recent buyers are increasingly underwater.
This divergence implies that long-term holders are still in good standing, but short-term participants may feel pressure.
If these recent entrants capitulate, it could trigger a broader correction.
Meanwhile, Miner Netflow Total dropped 7.52%, showing a growing preference to send coins to exchanges rather than holding them.
This miner activity, often a pre-distribution signal, aligns with broader weakening trends in ETFs and valuation metrics.
Although Miner Outflows don’t always lead to immediate sell-offs, they introduce friction during recovery phases.
Therefore, if this behavior persists, it could reinforce bearish narratives and restrict upward price mobility in the near term.
Source: CryptoQuant
Can BTC hold above $105K after losing trendline support?
Bitcoin traded at $105,537 at press time, logging a mild 0.56% intraday gain. Still, the price had already broken below a key trendline support.
With ATR falling to 2,602, volatility is compressing, typically a prelude to larger directional moves. For now, the $105K–$106K zone acts as a short-term pivot.
Therefore, unless bulls reclaim $108K resistance soon, the asset risks revisiting deeper support levels around $103K or below, especially if ETF outflows continue.
Source: TradingView
The $1.21B ETF outflow streak signals deepening institutional hesitation, aligning with weakening valuation models and consistent miner exits.
While network activity remains strong, it may not be enough to override macro fear.
If Bitcoin fails to recover above key resistance levels and institutional appetite doesn’t return, the current consolidation could evolve into a broader trend reversal.
