Bitcoin Slides $5,000 in Days as ETF Outflows, Derivatives Selling Raise Risk of Deeper Pullback

Bitcoin has fallen about 6% in recent days, dropping from $82,000 to $76,800, and key market indicators suggest the move may be more than a simple correction. Outflows from spot exchange-traded funds and heavier selling in derivatives markets are raising the risk of a deeper decline.

CoinDesk reported on May 19 that the 11 U.S.-listed spot Bitcoin ETFs have recorded more than $1.5 billion in net outflows since May 7. The one-day outflow on May 19 totaled $648 million, the largest since Jan. 29.

Market participants increasingly view the selloff as more than short-term profit-taking, linking it to an institutional pullback. After surrendering most of the inflows seen earlier this month, the ETFs have shifted to net outflows of $396 million for May.

Aggressive selling was also evident in spot and futures markets. On-chain analytics firm Glassnode said cumulative volume delta, or CVD, in the spot market plunged from $16.9 million to negative $126.2 million. CVD measures whether buyers or sellers are dominating through market orders.

Glassnode described the move as a clear shift toward aggressive selling. In the perpetual futures market, CVD dropped to negative $368.5 million, mirroring the pattern in spot trading.

The options market is also showing stronger demand for downside protection. As prices for put options used to hedge against declines rose, delta skew increased from 10.9% to 14.4%.

Glassnode analysts said that suggests options traders are placing greater weight on the risk of further losses in Bitcoin. Broader market caution is also intensifying.

Traders are citing the area around $76,000 as the first key support level. Below that, the $74,000 to $75,000 range is being watched as a major buying zone.

Vikram Subburaj, chief executive officer of India-based cryptocurrency exchange Giottus, said Bitcoin could enter a deeper correction if support at $76,000 gives way.