Bitcoin (BTC) has experienced a sustained decline, slipping below the $59,000 mark as appetite for the cryptocurrency wanes, leading to significant outflows from major exchange-traded funds (ETFs). Following last week’s rally, profit-taking has been a persistent theme, contributing to a week-long descent that saw BTC dip under $59,000 early Friday morning.

According to data from CoinGecko, BTC lost over 1% in the last 24 hours, bringing its weekly decline to over 3.5%. As August draws to a close, the cryptocurrency is poised to end the month with an 8% decline. The broader demand for Bitcoin remains tepid, with growth turning negative in recent weeks.

In the U.S., Bitcoin ETFs saw $71 million in net outflows on Thursday, marking the third consecutive day of withdrawals, as reported by SoSoValue. This trend indicates a retreat of professional funds from the market. Notably, Fidelity’s FBTC ETF experienced $31 million in outflows, while Grayscale’s GBTC saw $22 million exit. However, the most startling movement came from BlackRock’s IBIT, the largest Bitcoin fund globally, which recorded $13 million in outflows for only the second time in its history.

Despite these institutional withdrawals, data suggests a surge in demand from U.S. retail investors. On the Coinbase exchange, the Bitcoin price premium reached its highest level since July, according to a report by on-chain analytics firm CryptoQuant. Additionally, Bitcoin has been flowing from international exchanges to Coinbase, a trend that typically signals heightened demand from U.S. investors and often correlates with rising prices.

Also, read – ARB Crypto Price Prediction 2025: What Investors Need to Know

Looking ahead, market participants anticipate increased volatility in the coming weeks. Although BTC traded largely sideways over the past week, there are signs that market turbulence may be on the horizon, especially with looming rate cuts and recent endorsements from Republican candidate Donald Trump, which have influenced broader crypto market sentiment.

In a weekly note, Augustine Fan, head of insights at SOFA, remarked on the uneventful nature of the crypto market, with BTC and ETH hovering around +/- 1.5% from last week’s levels. ETF inflows remain muted, but Fan expects market activity to pick up after the U.S. Labor Day and into next week’s Non-Farm Payroll (NFP) report, which could signal the start of a busy Fall season. Political developments, particularly tax hikes proposed by Harris/Walz, are also expected to gain significance.

Traders at Singapore-based QCP Capital echoed these sentiments, forecasting continued choppy price action. In a Telegram broadcast, they noted that risk reversals until October are still skewed towards puts in both BTC and ETH, indicating that the market remains cautious about potential downside risks. They anticipate market volatility to persist in the lead-up to the NFP report, with traders positioning themselves for possible Federal Reserve rate cuts.

Federal Reserve Chair Jerome Powell has confirmed a shift towards lower borrowing costs next month, a move that historically boosts bullish sentiment among traders as easier access to capital fuels growth in riskier assets. QCP Capital, however, cautioned that in the absence of near-term catalysts, prices might continue to fluctuate within a range as September approaches.