Bitcoin ETFs collectively experienced the highest outflows yesterday since their January launch, marking the second consecutive day of withdrawals.

Consequently, the price of Bitcoin (BTC) faced downward pressure, pushing it below the $61,000 mark momentarily.

Bitcoin ETFs See $326M Outflows

According to Farside Investors, the total outflows from all nine Bitcoin ETFs reached $326 million on Tuesday, significantly surpassing the outflows recorded the previous day and marking a continuation of the trend.

Among these, the BlackRock Bitcoin ETF (IBIT) saw net inflows of only $75 million, while Fidelity’s Bitcoin ETF (FBTC) followed with $39.6 million, positioning it second. Other Bitcoin ETFs experienced minimal to no inflows, as reported by Farside, indicating that institutional investors are adopting a cautious stance in anticipation of the Federal Open Market Committee (FOMC) decision today, March 20.

In contrast, the Grayscale Bitcoin ETF (GBTC) faced significant withdrawals, with net outflows hitting $444 million on Tuesday alone. Grayscale also reported losing another 6,860 Bitcoin, representing about 1.9% of its total holdings.

This occurred despite Grayscale CEO Michael Sonneshiens announcement of an impending fee reduction for GBTC, which has had a limited impact on retaining investors confidence.

In the past two trading days, financial commentator Tedtalksmacro highlighted that almost $500M has flowed out of spot Bitcoin ETFs. He attributed traders cautious or exit behaviors to anticipating the FOMC decision and the ongoing tax season in the U.S. He also suggested that while a return to normal trading patterns is expected, some market volatility may ensue.

Bitcoin Nosedives Amid Declining ETF Interest

Bitcoin (BTC) tumbled below the $65,000 mark on Tuesday as interest in U.S.-listed spot exchange-traded funds (ETFs) waned. According to CoinGecko data, the top crypto by market cap witnessed a sharp decline of over 10%, dropping to below $61,000 yesterday. Bitcoin is currently trading at $63,830, down 0.7% over the past 24 hours.

The plunge pressured the general crypto market downward, falling 2.4% to hit $2.48 trillion in market capitalization.

In a discussion on X (formerly Twitter), market analyst Kruger outlined several contributing factors to the market downturn. He highlighted the excessive leverage in the market, showing that funding levels are critical. Kruger also pointed to the markets negative reaction to Ethereums decline, fueled by speculation that an ETF approval was unlikely, alongside negative inflows into Bitcoin ETFs. However, he cautioned that this data reflects a one-day lag.

Additionally, Kruger highlighted the excessive hype surrounding Solana, referring to it as shitcoin mania, which he deemed to have gone too far.