Spot Bitcoin ETFs in the U.S. recorded their largest single-day outflow in nearly three weeks, with $349 million withdrawn on Friday. This occurred as Bitcoin dipped below $68,000 after touching $74,000 earlier in the week.
Data shows that large holders, defined as wallets with 10 to 10,000 Bitcoin, aggressively bought between February 23 and March 3 when prices were in the $62,900 to $69,600 range. Once Bitcoin crossed $74,000, these whales began selling, offloading roughly 66% of their recent accumulation by Friday.
In contrast, smaller investors holding less than 0.01 Bitcoin increased their positions as prices fell. Historically, this divergence between large seller and small buyer activity has signaled further market correction.
Bitcoin's price drop pushed the Crypto Fear & Greed Index to 12, deep into "Extreme Fear" territory. Analysts suggest a potential further decline if buyers fail to defend the $67,000-$68,000 support level.
However, some economists remain optimistic. Economist Timothy Peterson noted that Bitcoin's price has historically found a bottom around $60,000, a level it tested on February 6. He estimates a 99.5% chance the price will stay above this floor. Despite this, the recent ETF outflows and whale selling indicate market instability.