Bitcoin ETF Outflows Signal “Oversold” Market, What’s Happening?

Key Insights:

• Bitcoin ETFs post $1.17B outflows in 5 days.
• BTC falls 5% in August to $113K.
• Pompliano says Bitcoin is oversold.
• Q4 often rebounds after weak Q3.

Spot Bitcoin ETFs have seen roughly $1.17 Billion leave over five trading days this week, as of Friday. That’s the largest outflow streak since April 2025.

Farside Investors data show net withdrawals jumped sharply (from $125 Million on Monday to $523 Million on Tuesday) amid a substantial drop in BTC price from it’s ATH earlier this month.

Over the week, Bitcoin slipped from mid-$120Ks to about $113K (around an 8% decline). At press time the coin was trading near $115K following a spike after Jerome Powell’s speech.

The 5-day outflow is by far the longest run of ETF redemptions in months, matching the seven-day streak in April when BTC traded near $79,625.

Bitcoin ETF Outflows Intensify Amid Market Selloff

Analysis of ETF flows confirms a broad selloff. On Tuesday alone, Fidelity’s Bitcoin and Ether funds saw over $400 Million in withdrawals, and Grayscale’s Bitcoin Trust (GBTC) lost roughly $116 Million.

In contrast, BlackRock’s flagship iShares Bitcoin Trust (IBIT) recorded no outflows earlier this week.

Ether ETFs were also hit, with combined outflows doubling from $200 Million to $422 Million. The ETF exodus coincided with a shift in sentiment: the Crypto Fear & Greed Index dropped into “Fear” at a score of 44, after a month of “Greed.”

Market veterans describe the recent ETF outflows as profit-taking after Bitcoin’s August peak. Analysts note the streak of withdrawals simply reversed the prior week’s inflows.

One industry observer wrote that “a few daily ETF outflows doesn’t mean TradFi is abandoning crypto” – it may just reflect short-term repositioning.

Nevertheless, last week’s slump has drawn comparisons to earlier selloffs. For example, April 2025 saw $812.3 Million of ETF outflows over a single month, even as Bitcoin still gained about 7.8% for the period. And in the first week of August, Bitcoin ETFs lost $643 Million, their worst week since April.

Pompliano: “Right now… it is pretty oversold”

In a CNBC interview on Thursday, Aug. 21, crypto investor Anthony Pompliano argued the pullback has likely gone “too far.” Bitcoin, he said, is “pretty oversold” at around $112–113K

Pompliano noted that technical indicators and past cycle patterns suggest a rebound could be underway.

He pointed out that Bitcoin is approaching price levels seen in the year after the April 2024 halving, a period that historically precedes a surge.

His emphasis was on seasonality: since 2013 Q3 has been Bitcoin’s weakest quarter (averaging +6.02%), whereas Q4 saw an average +85.42% gain. According to him,

“If people believe that the end of Q3 and the beginning of Q4 is a good time for Bitcoin, people start to act in a way.”

He expects the combination of traders returning from summer vacation and speculated Fed rate cuts to reignite demand in September and October.

Pompliano’s positive tone contrasts with some bearish forecasts. Other analysts point to broken support around $108K and oversold momentum indicators as a warning for further downside

But Pompliano argues the current dip may simply be a normal pullback. He reminded viewers that Bitcoin just hit a fresh all-time high ($124,128) on Aug. 14 and noted the asset remains far above its April 2025 lows.

Even so, he tempered expectations: Pompliano said he does not believe Bitcoin will reach $1 Million in this cycle, though he expects eventual long-term gains.

This latest outflow streak follows an unusually strong summer for crypto ETFs. In July 2025, U.S. spot crypto ETFs saw a record $12.8 Billion inflow – about $6 Billion into Bitcoin ETFs alone.

That surge outpaced any traditional ETF, underlining the shift of institutional interest into crypto.

The abrupt reversal in August echoes April’s pattern, when sustained outflows did not derail Bitcoin’s rally. Notably, even during April’s ETF exodus, Bitcoin rose 7.8% for the month.