At the time of the withdrawal, Bitcoin's price was approximately $62,450, down 2.3% from a 24-hour high of $63,900.

On-chain data further supports this bearish sentiment, showing a net exchange inflow of Bitcoin rose by 18,000 BTC.

Technical indicators also suggest bearish momentum for Bitcoin, with a drop in the Relative Strength Index (RSI) to 42 and a MACD crossover indicating increased selling pressure.

Despite the bearish sentiment, trading volume for the BTC/USDT pair on Binance surged to 1.2 million BTC, a 15% increase from the previous day, indicating heightened market activity.

Spot trading volumes also showed a 10% increase in BTC/USD sell orders on Coinbase, totaling 320,000 BTC by noon on the same day.

Moreover, AI-driven trading algorithms have seen a 12% increase in activity, suggesting that automated trading may further enhance market volatility in response to ETF flow data.

On April 29, 2025, Fidelity reported a significant net withdrawal of $86.9 million from its Bitcoin ETF, signaling a potential shift in investor sentiment towards Bitcoin funds.

Additionally, on-chain metrics revealed a 5% rise in Bitcoin transfers to exchanges, totaling 45,000 BTC, suggesting increased sell-off intentions among holders.

Key support levels for Bitcoin have been identified at $61,800 and $60,500, while resistance is noted at $63,000, reflecting the current trading dynamics following the ETF outflow.

This substantial outflow has contributed to a cautious market sentiment, particularly influenced by recent inflation data and marking one of the largest single-day withdrawals in the second quarter of 2025.

In light of these developments, traders are advised to stay informed on Bitcoin ETF flow trends and institutional investment patterns to effectively navigate the current volatile environment.

Such a significant outflow reflects a bearish outlook for Bitcoin's price in the short term, often associated with reduced institutional interest or profit-taking behavior.