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Bitcoin ETF withdrawals continued to accelerate this week as U.S. spot Bitcoin exchange-traded funds recorded another day of heavy redemptions, extending a historic losing streak that has now reached 11 consecutive trading sessions.
According to data from SoSoValue, investors pulled $483.8 million from spot Bitcoin ETFs on Monday alone, bringing cumulative Bitcoin ETF withdrawals during the current run to approximately $3.45 billion.
The sustained outflows come amid mounting geopolitical tensions, a broader decline in crypto markets, and renewed concerns about investor sentiment following a rare Bitcoin sale by Strategy.
As Bitcoin briefly fell below the $71,000 level, institutional investors appeared increasingly defensive, prompting one of the largest periods of Bitcoin ETF withdrawals since the products were launched.
The latest figures also follow a difficult May for spot Bitcoin ETFs, which collectively recorded $2.43 billion in net outflows, marking their weakest monthly performance since November 2025.
The latest wave of Bitcoin ETF withdrawals was led overwhelmingly by BlackRock’s iShares Bitcoin Trust (IBIT), which experienced $440.3 million in net outflows during Monday’s trading session.
Among major issuers, only Morgan Stanley’s MSBT fund managed to attract fresh capital, recording net inflows of approximately $6.14 million.
The broader trend suggests institutional investors are adopting a more cautious approach toward digital assets as uncertainty increases across financial markets.
At the same time, Bitcoin prices came under pressure. The cryptocurrency briefly touched an overnight low near $70,200 before recovering toward $70,750.
Despite the rebound, Bitcoin remained down roughly 3.6% over the previous 24-hour period.
The combination of falling prices and continued Bitcoin ETF withdrawals has raised concerns about short-term market sentiment, particularly after months in which ETF demand was widely viewed as a major support for Bitcoin’s price.
Several factors contributed to the latest surge in Bitcoin ETF withdrawals, including growing uncertainty surrounding geopolitical developments in the Middle East.
Investor sentiment weakened after reports emerged that Iran had suspended negotiations with the United States following Israeli military operations in Lebanon. The developments added pressure to already fragile risk markets.
Amid speculation about the future of diplomatic discussions, U.S. President Donald Trump attempted to reassure markets.
“Talks are continuing, at a rapid pace, with the Islamic Republic of Iran,” — Donald Trump, in a post on Truth Social.
Despite those comments, investors appeared reluctant to increase exposure to risk assets.
Market analysts noted that periods of geopolitical instability often encourage capital rotation into cash and defensive assets, leading to temporary reductions in exposure to more volatile sectors such as cryptocurrencies.
The growing uncertainty likely contributed to continued Bitcoin ETF withdrawals as institutions reassessed portfolio risk and liquidity needs.
Another catalyst behind the recent Bitcoin ETF withdrawals was a disclosure from Strategy that surprised portions of the crypto market.
In a Form 8-K filing released Monday, the company revealed it sold 32 BTC between May 26 and May 31 at an average price of $77,135 per coin.
The transaction generated approximately $2.5 million in proceeds, which Strategy said would support preferred stock distributions.
While the amount sold represented only a tiny fraction of the company’s total Bitcoin holdings, the symbolic significance drew considerable attention.
Strategy has long promoted a Bitcoin accumulation strategy and is widely associated with a buy-and-hold approach to digital assets. As a result, any sale even a relatively small one can influence market psychology.
The announcement coincided with increasing Bitcoin ETF withdrawals, reinforcing concerns among some investors that institutional conviction may be weakening in the face of market volatility.
The latest downturn also impacted leveraged traders.
As Bitcoin fell through several key support levels, derivatives markets experienced a sharp increase in forced liquidations.
According to data from CoinGlass, more than $388 million worth of leveraged long positions were liquidated during the selloff.
The liquidation event amplified downward pressure on prices and contributed to broader market weakness.
For crypto investors, the current streak of Bitcoin ETF withdrawals represents one of the clearest signs that institutional sentiment has shifted toward caution.
Whether the trend continues will likely depend on a combination of macroeconomic developments, geopolitical stability, and Bitcoin’s ability to reclaim key technical levels.
Until those factors improve, Bitcoin ETF withdrawals may remain a defining theme for the crypto market as investors navigate an increasingly uncertain environment.
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