Bitcoin Market Pain Intensifies Amid ETF Outflows and Miner Exits

The Bitcoin market continues to face significant challenges, with its market capitalization declining to $1.3 trillion from a peak of $2.5 trillion in October.

One contributing factor is the ongoing ETF outflows, which have reached $993 million in February and represent the longest exodus since 2025. This trend has been consistent for five consecutive weeks, totaling $3.8 billion. In contrast, institutional investors are increasing their presence in the Ethereum ecosystem, with notable purchases by BlackRock and Harvard University's endowment.

Furthermore, some former bitcoin miners are selling their holdings to fund a pivot to AI. Bitdeer, a former miner, announced it had sold all of its bitcoin holdings to support its transition to artificial intelligence. This move has raised concerns that digital asset treasuries may be forced to sell, further straining the market.

Despite these challenges, Strategy remains unfazed and continues to accumulate bitcoin, purchasing its 100th batch since August 2020.