Despite a turbulent week that saw record outflows from U.S. Bitcoin ETFs and the recent $19 billion liquidation event, shrinking exchange supply suggests the market may be poised for a rebound.
Summary
- U.S. spot Bitcoin ETFs lost $1.23 billion last week, with Friday alone seeing $366.6 million in outflows.
- Over 45,000 BTC have been withdrawn from exchanges since early October, signaling potential stabilization or recovery.
Spot Bitcoin (BTC) ETFs in the U.S. saw total outflows of $1.23 billion last week amid continued market turbulence. Friday alone accounted for $366.6 million in outflows, with BlackRock’s iShares Bitcoin Trust losing $268.6 million, Fidelity’s Bitcoin fund shedding $67.2 million, and Grayscale’s GBTC seeing $25 million exit. Minor outflows were reported from the Valkyrie ETF, while several other products remained flat.
These outflows compounded negative sentiment in the wake of last weekend’s historic liquidation event, which wiped out over $19 billion in leveraged positions across the crypto market. The crash was triggered by U.S. President Donald Trump’s surprise announcement of a 100% tariff on Chinese imports and threats of export controls, sparking panic selling and low liquidity.
Bitcoin’s 6-year low exchange supply points to recovery
Amid last week’s record ETF outflows and broader market weakness, a key metric signals potential bullish momentum: Bitcoin’s supply on exchanges has fallen to a six-year low. According to Glassnode data, over 45,000 BTC — worth approximately $4.81 billion — have been withdrawn from exchanges since the start of October. Historically, shrinking exchange reserves have tended to reduce selling pressure, often paving the way for price recovery or market stabilization.
This supports what many analysts are saying: despite last week’s bloodbath, the broader trend points to underlying market strength. For example, Scott Melker, the host of The Wolf of All Streets podcast, says that events like last weekend’s liquidation force the market to reprice risk but do not necessarily indicate a bear market.
“What happened last week was purely structural. The kind of event that forces everyone to stop, reprice risk, and rethink what’s actually possible (and broken) in this market… Meanwhile, public companies are adding BTC to balance sheets. Luxembourg just made Eurozone history. CME is prepping for 24/7 trading. Stablecoin issuers are exploding in growth. States are preparing to buy Bitcoin. The S&P is building a crypto index.”
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
