US-listed spot Bitcoin exchange-traded funds extended a historic sell-off on Wednesday, marking the 13th consecutive trading day of net outflows as demand for Bitcoin continued to erode. Spot Bitcoin ETFs recorded $396.6 million in net withdrawals on Wednesday alone, pushing cumulative outflows to approximately $4.4 billion since the streak commenced. This duration surpasses the previous record of eight consecutive days of outflows observed in February 2025, which saw roughly $3.2 billion exit the funds. Since the outflow streak began on May 15, the price of Bitcoin has declined about 21%, dropping from roughly $80,000 to $63,400 as of publication. Data compiled by Woofun AI shows that analysts attribute this decline to weakening ETF demand, selling pressure from long-term holders, and miner distribution.

BlackRock's iShares Bitcoin Trust (IBIT) accounted for the majority of redemptions during this 13-day period, recording approximately $3.3 billion in outflows. This figure represents roughly 75% of the total withdrawals across all US spot Bitcoin ETFs. Fidelity's Fidelity Wise Origin Bitcoin Fund (FBTC) emerged as the second-largest contributor with about $456.6 million in outflows, followed by Grayscale's Grayscale Bitcoin Trust ETF (GBTC) at roughly $303.6 million. Over the past 30 days, US spot Bitcoin ETFs have shed 51,726 BTC in outflows, equating to nearly $5 billion. As of Tuesday, IBIT held about 786,800 BTC, followed by FBTC with 181,770 BTC and GBTC with 146,400 BTC.

The recent outflows and price decline coincide with a sharp contraction in demand comparable to the post-Terra/Luna collapse period in 2022. Julio Moreno, head of research at CryptoQuant, noted that overall demand has dropped by about 501,000 BTC over the past month, marking the fastest monthly drop since May 2022. Industry observers remain divided on the primary drivers of this selling pressure. Bloomberg ETF analyst Eric Balchunas argued that long-term institutional buyers, including Bitcoin ETFs and Michael Saylor's Strategy, have remained net accumulators. 'Forget the boomers, someone needs to 'call the OGs' — they are behind this,' Balchunas stated, suggesting early adopters are the source of the supply shock.

Some market commentary points to derivatives positioning and exchange activity as potential amplifiers of the price decline, arguing that limited on-chain selling suggests leverage and liquidations are driving volatility. Ki Young Ju, founder of CryptoQuant, posited that recent selling by early Bitcoin holders and miners reflects a broader transfer of supply to US institutions, including ETFs and traditional investors. He suggested that this shift in ownership could strengthen long-term demand even as the market moves away from early 'cypherpunk' holders. Woofun AI observes that this narrative of supply migration contrasts with the immediate bearish sentiment driven by short-term liquidation cascades.

Despite the significant outflows, Geoffrey Kendrick, head of digital assets research at Standard Chartered, stated in a Thursday communication that Bitcoin ETF holdings have remained broadly stable since February. This stability suggests more structural resilience than previously expected despite current market volatility. Kendrick also highlighted recent corporate selling as reinforcing a bearish narrative in the short term, noting that Strategy's 32 BTC sale 'fit the DAT naysayer thesis.' He added that the timing was unfortunate given Bitcoin was already under pressure. Woofun AI analysis suggests that while short-term corporate sales exacerbate volatility, the underlying institutional accumulation may provide a floor for future price recovery.