Sonny S. Watts NAIROBI (CoinChapter.com) — Bitcoin (BTC) investors faced renewed pressure on Apr. 11 after institutional funds dumped nearly $150 million in BTC-linked exchange-traded funds (ETFs). Crypto commentator Jacob King described the move as the start of a broader breakdown, calling it a “Bitcoin bubble” on the verge of collapse.
His warning followed a 24-hour stretch of ETF outflows at one of the fastest paces seen this year. “Institutional investors are dumping BTC at record speed,” King posted on X. “The Bitcoin bubble is popping.”
That sentiment, although extreme, arrived as global market sentiment turned fragile due to escalating trade tensions and mixed macro signals out of Washington.
ETF Outflows Amplify Bitcoin Volatility
Bitcoin traded at $81,524 as of Friday morning, down nearly 10% from its Apr. 2 local high, according to CoinMarketCap. The selloff followed Jacob King’s tweet, which pointed to ETF withdrawals as a key stress point.
CoinShares and other data providers recorded over $150 million in outflows from Bitcoin ETFs in the past day. It marked the steepest drawdown since late Feb., wiping out gains from institutional inflows seen earlier this quarter.
This pace of withdrawal triggered debate among traders and commentators. While some viewed it as panic selling, others framed it as repositioning amid uncertain macro trends.
Tariff Volatility Sparks Mixed Market Reactions
Trump’s trade war escalations have created volatility across financial markets. The S&P 500 rose more than 8% on Apr. 9 after the president temporarily paused some of the newly announced import tariffs. Bitcoin’s market cap also rebounded, showing a similar 8% rise, according to CoinMarketCap data.
Despite the temporary bounce, uncertainty remains. David Siemer, CEO of Wave Digital Assets, said economic instability tends to accelerate institutional interest in digital assets. He noted a growing shift toward blockchain-based settlement tools as traditional financial systems face increasing geopolitical risk.
Siemer added that recent Bitcoin strength highlighted its role as a hedge. A Binance report dated Apr. 7 also pointed to BTC’s “resilience” amid global turbulence.
BTC Whales Accumulate, Retail Retreats
On-chain data presents a contrasting view. Since early March, whales—defined as large BTC holders—have added more than 100,000 BTC to their wallets, according to data shared by caueconomy. The accumulation trend continued despite muted network activity and fading interest from retail investors.
This divergence suggests that large players are exploiting price dips to lower their acquisition cost. While it may not signal an immediate reversal, it reflects long-term positioning by institutional entities often regarded as “smart money.” These cohorts typically exit during surges, potentially pressuring price once rallies gain momentum.
Traders Eye BTC Technical Bounce, Analysts Remain Divided
While King rings alarm bells, other traders argue the correction may set the stage for a rebound. Pseudonymous trader Merlijn said BTC just retested what he calls the “Crash Line,” historically followed by sharp gains averaging 3,495%.
Another user, Crypto Faibik, claimed Bitcoin is nearing a falling wedge breakout. He argued that a successful breakout could push BTC back toward its all-time high of $109,000.
Despite such optimism, short-term risks remain high. Institutional selling pressure, volatile macro conditions, and retail withdrawal could stall any bullish reversal.
