Bitcoin Returns to $63K: Eight Weeks of Outflows from ETFs Are Weighing On
By: Alexander Kuptsikevich | Published: Jul 06, 2026
Market Overview
The cryptocurrency market has shown signs of recovery but continues to face significant pressure. As of the start of trading on Monday, the total market capitalization rose to $2.21 trillion but quickly corrected to $2.18 trillion, indicating a 5% increase from the previous week. However, this rebound is characterized as a corrective phase, as the market has not managed to surpass previous local highs of $2.27 trillion, remaining in a downtrend marked by lower highs and lower lows.
Market Sentiment
The sentiment index has been on the rise, increasing by 1 point daily since July 3, reaching a value of 24 by July 6. Despite this increase, the index remains in the 'extreme fear' zone, reflecting a pessimistic outlook among investors, the highest level of fear seen in over a month.
Bitcoin Price Analysis
Bitcoin closed the previous week near $63,000, having approached the 200-week moving average, a significant historical support level. Although it peaked at around $64,000 on Sunday, selling pressure returned on Monday, causing a decline of approximately $1,000.
ETF Outflows and Market Volatility
Recent data from SoSoValue indicates that net outflows from Bitcoin ETFs reached $526.6 million over the past week, marking the eighth consecutive week of outflows. Ethereum ETFs also experienced outflows, albeit at a smaller scale, totaling $13.7 million.
Increased deposit volumes in Bitcoin and altcoins on exchanges have been noted, which historically precedes periods of heightened volatility. This pattern mirrors previous market behavior observed before Bitcoin's decline from $82,000 in early May to below $58,000 by the end of June.
Market Predictions
Analysts from Rekt Capital suggest that Bitcoin's current trajectory resembles that of 2022, predicting a continued decline. Historically, market bottoms have been reached approximately one year after the last peak.
Additionally, JPMorgan has raised concerns regarding the launch of Strategy’s Bitcoin reserve sell-off mechanism, which introduces "avoidable two-way risk" and contributes to market uncertainty and volatility.
Industry Developments
In a notable development, Japanese financial conglomerate SBI announced the closure of its mining pool, SBI Crypto, which contributes to 2% of the Bitcoin network's hash rate, effective July 31.
Furthermore, Ethereum co-founder Vitalik Buterin has outlined key development areas for the project, focusing on quantum resilience, privacy, scalability, and restructuring essential protocol elements.