Bitcoin Price Attempts Recovery as ETF Outflows Suggest Rotation to Stocks

Bitcoin ( CRYPTO: BTC) price is attempting a comeback, rising in the past four consecutive days, reaching its highest point since June 23, even as exchange-traded funds (ETF) outflows jumped.

BTC jumped to $62,615, up by 8.7% from its lowest point this month.

Bitcoin ETF Outflows Are Soaring BTC price rose for four days as investors attempted to buy the dip after falling by over 50% from its all-time high.

This rebound coincided with some ETF inflows on Thursday.

SoSoValue data shows that inflows rose by $221 million on that day, ending a ten-day period of sustained outflows.

Still, despite the inflows, data suggests that American investors have been selling their assets in the past few months.

Inflows jumped to $4.5 billion last month, the worst monthly performance since they were approved in 2024.

One potential reasons for the outflows is that investors have been moving from the crypto industry and investing in the booming stock market.

Top US stock indices have recently jumped to a record high, with ETF inflows in the country surging.

The popular Vanguard S&P 500 ETF (NYSE: VOO ) added over $90 billion in assets this year and has crossed the $1 trillion mark.

Investors in key countries like Japan and South Korea have also rotated from the crypto market to stocks.

Indeed, some popular stocks in the two countries like Japan’s Kioxia and South Korea’s SK Hynix and Samsung have more than doubled this year.

Bitcoin is also facing a major risk from Strategy (NASDAQ: MSTR ), which hinted that it will start selling its Bitcoin holdings in the near term to boost its cash reserves.

This is important because, as we saw in early June, its decision to sell 32 coins pushed Bitcoin below $60,000 for the first time in years.

Bitcoin Price Technicals Suggest More Downside Possible BTC price chart | Source: TradingView The daily chart shows that the BTC price has bounced back modestly in the past few days, moving from the year-to-date low of $57,828 to $62,823.

It remains below the 50-day and 100-day moving averages, suggesting that bears are still in control for now.

The coin is also likely in the handle section of the inverted cup-and-handle pattern.

Therefore, there is a risk that the coin will reverse when Strategy starts selling its coins.

Such a move may push more Bitcoin treasury companies to start selling their coins as well.

A drop below the support of $58,000 will point to further downside, potentially to $50,000.

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