Bitcoin Reclaims $70K as ETF Investors Still Face Losses

TheNewsCryptoPublished on 2026-03-05Last updated on 2026-03-05

Abstract

Bitcoin has reclaimed the $70,000 level, showing a recovery after weeks of volatile trading influenced by macro uncertainty and geopolitical tensions. Despite this rebound, data from CryptoQuant indicates that the average spot Bitcoin ETF investor is still at a loss, with an estimated cost basis of around $79,000. During the recent market correction, over $8.9 billion flowed out of the ETF ecosystem, with significant outflows from major funds like BlackRock's IBIT, which saw over 42,000 BTC withdrawn. These redemptions contributed to selling pressure, though the situation appears to be stabilizing as net drawdowns have slightly improved from -$8.9 billion to -$7.8 billion.

Bitcoin has successfully reclaimed the over $70,000 level, which shows a move that has kept selling pressure after the weeks of volatile trading. The recovery comes following the reaction of markets to macro uncertainty and geopolitical tensions.

However, the push over $70k provides a short-term improvement in momentum; the data still indicates that a prominent portion of market members are still under pressure. The CryptoQuant report reveals that the holders of spot Bitcoin ETFs that widely show institutional and retail demand via regulated investment vehicles are now placed below their estimated average realised price.

Estimated at around $79,000, this cost basis leaves the average ETF investor having a loss instead of the latest rebound. ETF flows can obscure internal reallocations between participations, and the calculation cannot completely capture every stated transaction within the funds.

However, it offers a useful estimation of the aggregate entry level for ETF capital. The analysis from Darkfrost underscores the scale of the latest pressure over spot Bitcoin ETFs. With Bitcoin trading below the $70,000 threshold during most of the correction, these funds listed the biggest drawdown since their all-time high in terms of invested value.

The Stabilizing Market

In terms of dollars, over $8.9 billion flowed out of the ETF ecosystem as investors suppressed exposure at the time of the downturn. The pressure was mainly seen in the biggest product in the market, iShares Bitcoin Trust (IBIT) from BlackRock, which once had over 806,000 BTC at its peak and witnessed substantial withdrawals during the correction.

As per the data, more than 42,000 BTC exited the fund, indicating a clear wave of distribution as market sentiment deteriorated and price momentum weakened. These outflows showed a prominent source of selling pressure at the time of the decline, reinforcing the wider weakness over spot markets.

While big ETFs witnessed withdrawals, they mostly needed to redeem Bitcoin to meet redemptions, increasing supply in the market. Although the data indicates the situation may be stabilising.

The net drawdown from ETF holdings has amplified from around -$8.9 billion to about -$7.8 billion from the peak.

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Related Questions

QWhat is the current price level that Bitcoin has reclaimed according to the article?

ABitcoin has reclaimed the over $70,000 level.

QDespite the price rebound, what does the data indicate about the average spot Bitcoin ETF investor's position?

AThe data indicates that the average spot Bitcoin ETF investor is still at a loss, as their estimated average realized price is around $79,000, which is higher than the current price.

QWhich specific Bitcoin ETF product experienced the largest withdrawals during the market correction?

AThe iShares Bitcoin Trust (IBIT) from BlackRock, the biggest product in the market, experienced substantial withdrawals, with over 42,000 BTC exiting the fund.

QWhat was the approximate total amount, in dollars, that flowed out of the ETF ecosystem during the downturn?

AOver $8.9 billion flowed out of the ETF ecosystem during the downturn.

QWhat is the trend in the net drawdown from ETF holdings, according to the latest data in the article?

AThe net drawdown from ETF holdings has shown signs of stabilizing, improving from around -$8.9 billion to about -$7.8 billion from the peak.

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