Daily outflows of Bitcoin ETF surpass $500M, signaling the end of excessive bullish market tendencies.

Bitcoin (BTC) did not experience a massive margin call on its futures contracts as its price dropped to a two-month low, according to analysis. Checkmate, the lead on-chain analyst at Glassnode, revealed a significant change in the Bitcoin bull market on X. Although Bitcoin’s drop to $56,500 on May 1 was surprising, this pullback is seen as a positive development for the market’s overall health. Checkmate explained that there has been a gradual de-leveraging of Bitcoin futures since the cryptocurrency reached its all-time high in mid-March, signaling the end of excessive bullish sentiment in the market. This is in contrast to the 2021 bull market, where massive derivatives-led deleveraging events caused significant price declines. Funding rates for Bitcoin derivatives have cooled off gradually and not violently, which is considered a healthy sign. The recent downward price movement of Bitcoin is attributed to factors other than futures markets, as evidenced by the significant outflows from US spot Bitcoin exchange-traded funds (ETFs). Investors reacted to the performance of Bitcoin by withdrawing more than half a billion dollars from these ETFs, including BlackRock’s iShares Bitcoin Trust, which experienced its worst day on record. Fidelity Investments’ Fidelity Wise Origin Bitcoin Fund saw the largest outflow at $191 million. The sentiment in the crypto market has also shifted, with the Crypto Fear & Greed Index returning to neutral territory, indicating increased fear among investors. It is important to note that this article does not provide investment advice, and readers should conduct their own research before making any investment decisions.