Question #204 ·
How do Bitcoin ETF outflows affect institutional interest and market trends?
- ETF outflows increase institutional demand by creating attractive buying opportunities.
- ETF outflows no effect as institutions remain uninterested in Bitcoin.
- ETF outflows boost Bitcoin prices by reducing coins on exchanges.
- ETF outflows shrink institutional holdings, signal fading confidence, reinforce bearishness. Right answer
Why is this the correct answer?
This is correct because institutional investors selling ETF shares reduces their BTC exposure and indicates reduced confidence, which often leads traders to expect further declines, strengthening bearish market trends.