Bitcoin falls amid ETF outflows and macroeconomic pressures

Bitcoin (BTC) remained under pressure on Thursday, trading below $83,000 at the time of writing and posting a decline of more than 4% since the beginning of the week. The weakness came amid fading institutional demand, with US spot Bitcoin exchange-traded funds recording outflows of more than $487 million on Wednesday, their largest daily withdrawals since June 25.

Meanwhile, broader macroeconomic pressures weighed on investor sentiment, adding to the downward pressure on Bitcoin, often referred to as the king of cryptocurrencies.

Early signs of weakening institutional demand

Early signs of declining institutional demand for Bitcoin have emerged this week. Data from SoSoValue showed that spot Bitcoin ETFs recorded outflows of $487.07 million on Wednesday, their largest single-day net withdrawals since June 25.

If this trend of outflows continues and accelerates over the remainder of the week, Bitcoin could face a deeper price correction.

On-chain activity also points to continued caution in the market. Blockchain analytics platform Lookonchain reported on X on Thursday that wallets linked to the US government had transferred another $566 million worth of assets over the previous 10 hours, including 4,632 BTC, 119 million Tether (USDT) tokens and 750 Wrapped Bitcoin (WBTC) tokens.