Bitcoin has had a tumultuous week, with its price dropping by about 5% to approximately $56,400 after nearing $60,000. The decline was fueled by significant outflows from spot Bitcoin Exchange Traded Funds (ETFs).
US spot Bitcoin ETFs saw extensive withdrawals, starting with a net outflow of $287.78 million on Tuesday, followed by $37.29 million on Wednesday, and $211.15 million on Thursday, culminating in a total outflow of $536.22 million over the week.
Arthur Hayes, co-founder of BitMEX, shared a bearish outlook, expecting Bitcoin to fall below $50,000 soon and announced his short position on the cryptocurrency.
Veteran trader Peter Brandt also predicted a decline to $46,000, proposing that Bitcoin is currently in an 'inverted expanding triangle' or 'megaphone' pattern, where selling pressure surpasses buying.
The US jobs non-farm payroll report is due and anticipated by investors, as it could affect the Federal Reserve's interest rate decisions, potentially impacting global markets and cryptocurrencies.
The Crypto Fear & Greed Index plunged into the 'extreme fear' category, dropping to 22 from 29, signaling heightened market anxiety. Despite this, some traders find potential opportunities, recalling similar sentiments when Bitcoin dipped to $16,000 in November 2022.
