Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the decline, withdrawing $374 million during the week. Grayscale’s Bitcoin ETF (GBTC) followed suit, seeing an outflow of $227 million, according to data from Farside Investors.

BlackRock’s iShares Bitcoin Trust (IBIT), the world’s largest Bitcoin ETF, suffered a second outflow since its launch in January, losing $13.5 million on August 29.

Despite seeing strong inflows so far this period, IBIT did not show any activity during these seven days.

While other US Bitcoin ETFs also experienced losses, WisdomTree’s Bitcoin Fund (BTCW) was the only exception, showing no significant inflows or outflows.

This decline in Bitcoin ETF activity has coincided with the price of Bitcoin falling over 4% in the past week and is currently trading around $56,500.

Analysts attribute the price decline in part to ETF outflows and growing concerns about global market instability.

On Thursday, September 5, Bitcoin funds experienced an outflow of $211 million, the fourth highest daily loss since May 1.

Amid these market difficulties, Bitcoin failed to break the $65,000 resistance level, creating selling pressure especially for short-term investors.

Meanwhile, the Fear and Greed Index remains in “fear” territory as concerns about a potential recession grow.

Additionally, Ethereum spot ETFs also experienced outflows. Grayscale’s Ethereum ETF (ETHE) lost $7.39 million on September 5, while its mini ETF gained $7.24 million with a slight inflow.

As reported, digital asset investment products faced significant outflows last week, with a total of $305 million leaving the market.

This trend reflects a broader wave of negative sentiment affecting the cryptocurrency market in various regions.

The primary catalyst behind this decline was stronger-than-expected economic data from the United States. This reduced the possibility of the Federal Reserve making a 50 basis point interest rate cut.

The Bitcoin network has experienced a significant decline in activity, dropping to levels not seen in three years.

According to on-chain analysis platform CryptoQuant, there is a general feeling of “apathy” affecting the crypto market and Bitcoin transaction volumes have noticeably decreased.

In a recent blog post, CryptoQuant noted that active addresses on the Bitcoin network have fallen from almost 1.2 million in mid-March to 838,000 currently.

By the end of August, that figure had fallen even further to just 744,000, marking the lowest daily level since 2021.

“The total number of active addresses on the Bitcoin network has reached new lows in 2024, falling to levels similar to three years ago when Bitcoin was trading at around $45,000,” CryptoQuant contributor Gaah said. he wrote.

Gaah added that the decrease in the number of active addresses indicates that network activity has decreased, which means fewer transactions are taking place, which may indicate a decrease in interest in using the network.