Bitcoin Price Plunges Below $65,000 as US Spot Bitcoin ETFs Suffer Heavy Outflows

Bitcoin's price took a significant hit last week, falling below $65,000 and reaching its lowest level since July 17. The flagship cryptocurrency's value briefly touched $63,100 before recovering slightly to around $64,500.

Despite this setback, Bitcoin ETFs still hold high net assets of $77.2 billion. However, institutional confidence in the asset appears to be waning, with US spot Bitcoin ETFs experiencing four consecutive days of outflows totaling $526 million.

The largest withdrawal on July 24 reached $240 million, followed by another $225 million the next day. BlackRock's IBIT lost 3,511 BTC in a week, exceeding total net outflows for the category.

Institutional investors seem to be reallocating their portfolios towards altcoins, with Ethereum and Solana ETFs attracting significant inflows. Morgan Stanley launched two new funds on July 28, featuring management fees of 0.14% and distributing staking rewards directly to investors.