Bitcoin ETF Outflows Reach $1.1 Billion as Mini Bear Market Concerns Emerge

Record Outflows Signal Institutional Demand Slowdown

US spot Bitcoin exchange-traded funds experienced their third consecutive week of negative performance, raising significant concerns about weakening institutional demand. The funds recorded $1.1 billion in net outflows during the past trading week, representing the fourth-largest weekly outflow in ETF history according to market data.

This substantial capital exit coincided with a sharp market correction, as Bitcoin price declined by over 9.9 percent during the week. At the time of reporting, Bitcoin was trading at $95,740, reflecting the broader market downturn affecting cryptocurrency assets.

Analysts Identify Emerging Bear Market Pattern

Crypto insights platform Matrixport has identified the recent correction as the initial pattern of a developing mini bear market. Their analysis revealed a market struggling with momentum and lacking the necessary catalysts to sustain a meaningful rally.

Market data indicates weakening ETF flows combined with original investors reducing their exposure. The current macro environment offers no immediate positive catalysts, making the market trajectory heavily dependent on upcoming policy decisions from the Federal Reserve.

Critical Market Juncture for Bitcoin

According to market analysts, the cryptocurrency market has reached a pivotal juncture. Key price levels and macroeconomic triggers will determine the next significant price movement for Bitcoin and related digital assets.

Throughout 2025, US spot Bitcoin ETF inflows and investments from major institutional players like Michael Saylor's Strategy have been the primary demand drivers for Bitcoin. The current outflow trend represents a notable shift in this pattern.

Solana ETFs Buck the Trend with Positive Inflows

Despite the broader market downturn, spot Solana ETFs have demonstrated remarkable resilience by generating positive inflows. These funds attracted $12 million in inflows on Friday alone, marking 13 consecutive days of positive flows since their launch on October 29.

However, positive ETF inflows have not translated into price stability for Solana. The asset experienced a 15 percent decline on the weekly chart despite the continued institutional interest.

Ethereum ETFs Face Sustained Outflows

Spot Ether ETFs recorded $177 million in outflows on Friday, marking the fourth consecutive day of negative flows. This sustained outflow pattern mirrors the challenges facing Bitcoin ETFs, suggesting broader institutional retreat from cryptocurrency exposure.

Ethereum price fell 11 percent during the same period, aligning with the overall market correction affecting major cryptocurrencies.

Federal Reserve Policy Holds Key to Market Recovery

Market participants are closely watching Federal Reserve policy decisions as the critical factor that could determine the next phase of the cryptocurrency market cycle. Without clear macroeconomic catalysts or supportive monetary policy signals, the market faces continued uncertainty.

The combination of weakening ETF flows, reduced institutional exposure, and unfavorable macro conditions creates a challenging environment for Bitcoin and other cryptocurrencies in the near term. Investors and analysts remain focused on key support levels and policy announcements that could shift market sentiment.

Market Outlook Remains Uncertain

The cryptocurrency market continues to navigate complex macro conditions with institutional demand showing signs of fatigue. The coming weeks will be critical in determining whether current price levels represent a temporary correction or the beginning of a more extended downturn.

As Bitcoin approaches key technical levels, market participants are evaluating risk exposure and reassessing portfolio allocations. The interaction between institutional flows, regulatory developments, and Federal Reserve policy will likely determine market direction through the remainder of the year.

For more Crypto, Web3, Blockchain & AI news visit : www.metamoonmedia.com