Bitcoin ETF outflows push Swissblock risk gauge higher

Bitcoin has entered a higher-risk trading environment as persistent outflows from US spot Bitcoin ETFs fuel concerns over growing institutional selling pressure.

Crypto analytics platform Swissblock said its proprietary Bitcoin Risk Index climbed to 33 out of 100, warning that market conditions are shifting from accumulation into distribution as ETF demand weakens.

“Every time the Risk Index signals that selling pressure is structurally overwhelming the market, what sits underneath is institutional distribution,”

Swissblock said.

Swissblock said Bitcoin experienced strong accumulation during March and April, but May marked a reversal as ETF flows deteriorated and selling pressure increasingly outweighed buying demand.

On-chain analytics firm Glassnode reported that US spot Bitcoin ETFs recorded net outflows on nearly every trading day since May 7, adding that “this steady drip of outflow continues to add to the supply side without a visible demand offset.”

Bitcoin fell around 1% to below $76,500 after reports emerged that US forces launched fresh strikes on Iranian missile sites and naval assets, despite ongoing diplomatic efforts between Washington and Tehran.

Jeff Ko, chief analyst at CoinEx, said institutional risk appetite remains fragile, noting that more than $2 billion in ETF outflows over the past two weeks reflects continued caution across crypto markets.

At the time of reporting, Bitcoin price was $76,685.66.