US-based Bitcoin spot exchange-traded funds (ETFs) extended their outflow streak to five days as sentiment in the cryptocurrency market continues to decline.
Bitcoin (BTC) spot ETFs recorded $103.5 million in net outflows on Friday, continuing a streak of outflows that began the previous Friday.
Over the five days, including the four-day trading week in the US shortened by Martin Luther King Jr. Day on Monday, total outflows reached approximately $1.72 billion, according to data from Farside.
The spot price of Bitcoin is $89,160 at the time of publication, having not been above the psychological level of $100,000 since November 13, according to CoinMarketCap.
Bitcoin is up 2.40% in the last 30 days. Source: CoinMarketCap
Market participants often observe the flows of the spot Bitcoin ETF to gauge retail investor sentiment and look for clues as to where the trend may be heading for Bitcoin in the coming weeks.
The cryptocurrency market is in a “phase of uncertainty,” says Santiment
This happens as the broader sentiment of the cryptocurrency market has declined recently.
The Crypto Fear and Greed Index, which measures the overall sentiment of the cryptocurrency market, recorded an “Extreme Fear” score of 25 in its update on Sunday.
The Index has been in “Extreme Fear” territory since Wednesday. Source: alternative.me
The crypto sentiment platform Santiment said in a report on Saturday that the cryptocurrency market is in “a phase of uncertainty.”
“Retail traders are heading towards the exits, while money and attention are flowing into more traditional assets,” Santiment said, arguing that a reversal of the current devaluation could be a short-term possibility.
“At the same time, quieter signals like supply distribution and the lack of social conversation suggest that a bottom may be forming,” Santiment said.
“The best move is probably patience.”
Meanwhile, the global macro research firm The Bitcoin Layer, founded by Nik Bhatia, said in a post on X on Saturday that the declining sentiment may be partially driven by recent increases in metal prices.
“With gold practically at $5,000 and silver at $100, the sentiment in Bitcoin is so bad for being excluded from the metal rally that it almost feels like the post-FTX bearish vibes at $17,000,” Bhatia said.
Related: Bitcoin nodes running BIP-110 cross 2% as spam wars heat up
“I am optimistic, but in a painful way, where fear dominates and you have to overcome it,” Bhatia added.
Cryptocurrency analyst Bob Loukas said that “the sentiment is at rock bottom and we could argue that it is overdue for some kind of strong counter-trend rally.”