Bitcoin has regained some momentum after its recent decline, but analysts note that the recovery lacks conviction as institutional outflows continue to weigh on the market. Despite improved intraday price action, ETF redemptions remain a major drag on sentiment.
Spot Bitcoin ETFs have seen consistent withdrawals over the past week, signaling that large investors are still reducing exposure. This steady stream of outflows limits upside potential and contributes to choppy price behavior even as Bitcoin attempts to rebound.
Analysts say the outflows reflect cautious institutional positioning amid global macro uncertainty. Until ETF redemptions stabilize, Bitcoin may struggle to sustain a meaningful rally.
On-chain data shows continued selling from institutional-linked wallets and platforms, suggesting big holders are using market bounces to trim positions. This trend contrasts with retail inflows, which have supported the latest rebound but lack the volume to drive a strong breakout.
Market observers warn that unless institutional demand returns, Bitcoin’s recovery could remain fragile. For now, the bounce signals improved sentiment—but lingering sell pressure may keep volatility elevated in the short term.
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