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US spot Bitcoin (BTC) ETFs are bleeding out, shedding a massive $410 million on Thursday as Bitcoin slipped below $66,000.
That’s a punch to the gut for bulls hoping for a quick reversal. The institutional tap hasn’t just been turned off; it’s running in reverse.
This marks the second straight day of heavy red candles for the ETFs, bringing the two-day burn to over $686 million. BlackRock’s IBIT took the hardest hit, dumping $157.56 million, while Fidelity’s FBTC wasn’t far behind with $104 million in outflows. Even the stalwarts are capitulating.
The trigger? Hotter-than-expected payroll data that has traders pricing out Fed rate cuts faster than you can say “liquidation.”
Global sentiment is shifting rapidly: while some jurisdictions continue to sit on the fence with crypto, others are actively preparing for global adoption.
That said, the pressure from such hefty outflows is undeniably mounting and highlights systemic risk from a sudden, too-fast exit of institutional money.
Discover: Here are the crypto likely to explode!
Is the Institutional Floor Collapsing?
Let’s look at the charts. Bitcoin is trading just above $67,000, a brutal 47% drop from its October 2025 all-time high of $126,080.
The macro picture is getting ugly, prompting major banks to slash their targets. Standard Chartered now sees BTC potentially diving to $50,000. Meanwhile, JP Morgan cut its production cost estimate to $77,000, citing declining hashrate and mining difficulty.
It’s not just spot markets flashing warnings. We’re seeing alarming signals in derivatives, reminiscent of recent whale perp spikes that suggest big money is hedging hard against further downsides.
When whales start protecting their downside this aggressively, you need to pay attention.
Adding fuel to the fire, alarming new research regarding systemic risks has surfaced, leaving retail traders wondering if their assets are safe. The fear is palpable, creating a feedback loop that drives prices lower.
Even Bitcoin’s most notorious bull, Michael Saylor, the founder of the largest Bitcoin treasury company, Strategy, appears to be uncertain about where Bitcoin is headed next.
What You Should Watch Next
If you’re looking for entries, proceed with caution. The $60,000 psychological level is now the line in the sand. If that breaks, the $50,000 bear target becomes a scary reality almost overnight.
Watch the flow data closely on trackers like SoSoValue. Until we see positive inflows return, catching this falling knife is risky.
However, for the brave contrarians, this dip might look like an opportunity similar to the best crypto plays identified earlier this week.
Volatility cuts both ways. Keep your eye on the upcoming inflation prints. If data cools, flows could reverse. But right now? Cash could remain king for a while yet.
