Analysis: $1.26 billion outflow from Bitcoin ETFs may be a "contrarian buy signal"

According to Mars Finance, on May 23, crypto analytics platform Santiment stated that the US spot Bitcoin ETF experienced a net outflow of approximately $1.26 billion over the past six trading days, which may actually constitute a "contrarian buy signal" for Bitcoin. Santiment believes that ETF fund flows reflect retail investor sentiment more than changes in "smart money" positions. The report points out that some retail investors lost patience because Bitcoin failed to hold above $80,000 in May, and BTC is currently trading at around $75,400, down from its high of around $79,000 on May 16. Santiment stated that historically, sustained ETF outflows have often corresponded to a phase "suitable for patient accumulation," rather than market panic. However, this view differs from the mainstream market opinion. Most analysts believe that continuous outflows from spot Bitcoin ETFs usually indicate weakening market sentiment and potential further price pressure. On the other hand, Bloomberg ETF analyst James Seyffart said that since the launch of ETFs, the cumulative net inflow has approached $60 billion, basically recovering the impact of the outflow of about $9 billion from October last year to February this year, and he expects that with the launch of more ETF products in the future, the scale of fund inflows is expected to reach a new historical high.