Spot Bitcoin exchange-traded funds in the U.S. experienced outflows exceeding $300 million this week, as global macroeconomic events introduced uncertainty over short-term direction.

Weekly Outflows Amid Geopolitical Tensions

After closing September with over $1.1 billion in inflows, approximately $388.4 million exited the 12-spot Bitcoin ETF funds between Oct. 1 and Oct. 3. This coincided with the escalating Iran-Israel conflict, which pushed Bitcoin’s price to a weekly low of $60,047.

Market Recovery and Inflows

On Oct. 4, better-than-expected U.S. payroll data provided some relief to the market, allowing Bitcoin to reclaim the $62,000 level. ETF products saw $25.59 million in inflows. However, this recovery wasn’t sufficient to fully counterbalance the impact of the three-day outflow streak.

Three Weeks of Inflows Reversed

Since Sept. 13, three consecutive weeks of inflows had brought in about $1.91 billion into spot Bitcoin ETFs. This week’s outflows caused these funds to end the first week of October in negative territory, with $301.54 million flowing out, according to SoSoValue data.

ETF Fund Performance

Highlighting the last trading day’s activity, Bitwise’s BITB saw the most inflows, while seven out of the twelve Bitcoin ETF products, including BlackRock’s IBIT, showed no movement. Bitwise’s BITB led with inflows of $15.29 million, followed by Fidelity’s FBTC at $13.63 million, and ARK and 21Shares’ ARKB with its first inflow this week, bringing in $5.29 million. VanEck’s BTCW also saw inflows of $5.29 million, while Grayscale’s GBTC recorded outflows of $13.91 million.

Bitcoin Miners’ Selling Pressure

In addition to the ETF market, some selling pressure also came from Bitcoin miners. According to crypto analyst Ali, miners have offloaded approximately $143 million worth of Bitcoin since Sept. 29.

Bitcoin miners have sold 2,364 BTC in the past six days, worth around $143 million!

Critical Price Levels

The selling activity could intensify, as Ali noted that Bitcoin had been trading below the short-term holders’ realized price, currently at $63,000. This price represents the average cost at which short-term investors acquired their Bitcoin. When the market dips below this level, these holders are more inclined to sell to minimize losses, risking a “cascading sell-off” that could exert further selling pressure. Ali advised investors to watch the $63,000 mark as a key level Bitcoin needs to conquer to avoid further losses.

On the other hand, Crypto analyst Immortal pointed to a slightly higher short-term target of $64,000, suggesting that if Bitcoin manages to break above this key resistance level, it could signal the beginning of a strong bullish move.

Long-Term Market Outlook

Despite short-term volatility, experts remain optimistic about Bitcoin’s longer-term prospects. Citing Bitcoin’s historical Q4 performance and expectations of U.S. rate cuts, they believe prices could drive towards the $72,000 range.

At the time of writing, Bitcoin was hovering just above $62,200, marking a drop of over 5% in the past week. Market sentiment appears to be picking up, with the Fear and Greed Index nudging back to a neutral 49, up from a more cautious 41 the previous day.

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