ETF has seen outflows of 5.5 billion USD for four consecutive weeks, becoming the culprit of the fall? CryptoQuant: BTC has reached the spot buying zone.

The crypto market has seen a sharp fall in recent weeks, with a total outflow of 5.58 billion USD from Bitcoin and Ethereum spot ETFs in a single month, raising concerns that the market may have entered a Bear Market prematurely. JPMorgan pointed out that this pullback seems more like a retail investor exodus rather than a systemic collapse. CryptoQuant CEO Ki Young Ju further stated that Bitcoin is currently in a reasonable long-term spot accumulation range.

JPMorgan pointed out that nearly 4 billion USD has flowed out of Bitcoin and Ethereum Spot ETFs in November, in stark contrast to the strong capital inflow of stock ETFs during the same period.

Bitcoin and Ethereum Spot ETF saw a monthly outflow of 5.5 billion USD, marking the highest in history.

SoSoValue data shows that in November, Bitcoin and Ether Spot ETFs have seen a net outflow of about $5.58 billion, surpassing the record set in February, making it the highest ever. The former had a net outflow of $3.79 billion, while the latter was $1.79 billion.

Bitcoin Spot ETF recorded the largest monthly net outflow in history, reaching 3.79 billion USD.

Among them, BlackRock's IBIT accounts for the majority, with outflows exceeding 2.08 billion dollars, accounting for approximately 54.8% of the total BTC ETF outflows. In contrast, the SOL Spot ETF seems to be experiencing a buy-the-dip strategy, as it has had net inflows every day since its launch at the end of October, accumulating nearly 500 million dollars.

JPMorgan claims that retail investors in ETFs are the culprit for the fall, and ETF investors are now trapped.

JPMorgan pointed out that the behind-the-scenes culprit of this month's market pullback is not institutions or crypto native traders, but rather the large-scale withdrawal of retail investors from ETFs. Analysts stated that this drop intensified as it fell below the bank's estimated production cost of around $94,000.

( Bitcoin Spot ETF saw an outflow of 870 million USD in a single day, making it the second largest in history, with 94K serving as a common defense line for bulls ).

According to data from macro researcher Jim Bianco, the average holder of Bitcoin spot ETFs is currently in a state of loss, which can be described as a collective entrapment.

However, due to retail investors injecting as much as $96 billion into stock ETFs in November, JPMorgan analysts still believe that this pullback is not a broader risk retreat.

CryptoQuant CEO calls out: This feels more like a long-term Spot buying opportunity.

The CEO of CryptoQuant, Ki Young Ju, pointed out in a community post that if investors focus on spot trading and do not use leverage, the current price level is actually a “reasonable long-term accumulation range”:.

From an on-chain model perspective, the bull market cycle ended earlier this year when Bitcoin reached around 100,000 USD, and theoretically, the bottom will form around 56,000 USD.

He clarified that the bull market referred to here means that the “bull market interpreted from on-chain data” has ended, however, the “long-term bull market of macro conditions” is far from over.

( Bitcoin Enters the Era of Institutional Dominance: CryptoQuant Analyzes Strong Capital Inflows but Reasons for Price Stagnation )

Political year introducing liquidity? CryptoQuant: Possible rebound at any time

Ki Young Ju emphasized that the probability of falling back to that price level is low because large holders ( MicroStrategy and institutions ) will not sell off. Given that the U.S. government needs to inject liquidity before the middle of next year, market sentiment could rebound at any time:

Selling or shorting here is not a good idea.

As on-chain researcher Aylo mentioned earlier: “The difference between this Bitcoin cycle and previous cycles is that Bitcoin has gained long-term passive capital flow through ETFs, which provides downside protection and will therefore form a higher bottom.”

Is this article about the ETF that has seen a flow out of 5.5 billion dollars for four consecutive weeks the culprit for the fall? CryptoQuant: BTC has reached the Spot buying zone, first appeared in Chain News ABMedia.