BTC hovered at an important technical level to finish the week, and U.S. spot ETFs reported their first daily net outflow day of May.
The outflow day in context
Spot Bitcoin ETFs traded on U.S. exchanges recorded net outflows of $277.5 million on May 7, with SoSoValue data highlighting that the event terminated a five-day inflows streak that had generated almost $1.7 billion. To provide perspective, just one day erased almost 16 percent of that recent gain.
The sell-off failed to break anything structurally. The value of Bitcoin plummeted to $79,250 on May 7th but stabilized thereafter. At present, BTC/USDT is trading for $80,233.71, +0.28 percent over the day, with a session high and low of $80,500 and $79,181, respectively. This still places price within the wider supply zone drawn on the daily chart, a band of resistance from roughly $79,000-$84,000.
Fidelity and BlackRock: where the money left
Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw outflows of $129 million in redemptions. The next redemptions of $98 million came from Blackrock’s iShares Bitcoin Trust (IBIT). The two combined $227 million out of the total $277.5 million and were 82 percent of all redemptions between the two funds.
That these two instruments are actively managed does make a difference, and this is because these two, FBTC and IBIT, represent the most liquid and readily available spot Bitcoin ETFs in the U.S. market. These products are likely to bring in the most diverse group of users, including a significant number of short-term traders and tactical allocators who view these as an instrument for quickly entering or exiting a Bitcoin position. This cohort likely exited when the price of Bitcoin fell around $2,000 in one day, moving from levels above $82,000 to close to the levels near $79,000.
Where money stayed and went in
The more analytically significant finding, though, is what happened with Morgan Stanley’s Bitcoin Trust ETF (MSBT) that same day. MSBT experienced $7.3M in inflows on May 7 and has not had one single day with a net outflow of assets since its launch on April 8, 2026. In approximately one month, MSBT has acquired 2,920 BTC, currently valued at nearly $232.6 million.
The Grayscale Bitcoin Mini Trust was the only other fund to record inflows on that day.
MSBT is not available through discount brokerages as IBIT and FBTC are; rather, it targets Morgan Stanley’s wealth management client base. This is likely a longer duration and stickier pool of capital, which appears to be structurally more resilient to short-term price action. Throughout the entirety of the recovery this April, its advance above $80,000, and eventual snap-back, it has had perfect inflows, which clearly indicates that its users are not speculating on daily price action.
April context and what the reversal represents
The outflows on May 7 were the first since a strong month in April, which registered $2.44 billion of aggregate net spot Bitcoin ETF inflows, a strong performance across the board, as price action began its march higher after failing to hold below the $65,500 mark in late March. There is nothing unusual about the shift back into outflows in a single turbulent day after a run of inflows, and it solidifies that price action and ETF flows often walk hand-in-hand, as interest tends to build while prices rise and fade out while they trend sideways or go through a correction.
In contrast, Spot Ethereum ETFs also turned negative on May 7. Total outflows were $104 million. No Ethereum ETF managed to accumulate inflows on that day. The risk-off sentiment was then probably not Bitcoin-specific but across the whole of the crypto ETF space.
Price structure and what technicals say
On the daily chart, BTC is trading inside a wide supply zone that has been tested multiple times since the cycle high close to $126k. 97999 is clearly acting as overhead resistance. The area of $79300-$83500 has been supported and resisted for months on end, and currently with the price trading at $80233, it is almost perfectly on the pivot of approximately $80220.
In terms of momentum on the 1-hour timeframe, the picture is neither particularly bullish nor bearish. The RSI’s 14 and 21 are currently oscillating around the 50 level and have no lengthy overbought/oversold readings. The RSI 7 is hovering around 68, showing only the quick and potentially temporary movements from the buying pressure. While the MACD histogram is now in positive territory, this is a mild bullish confirmation, but the MACD and signal line are still showing slightly negative readings, indicating improving but not yet confirmed bullish momentum.
Fibonacci resistances are located from $80,445 to $81,100, and the latest swing high, $81,685, is the next support of significance above. Downside Fibonacci supports are $80,150 and $79,700, with the $79,200 representing deeper support where the 200-period averages and past swing low meet.
The range $79.5K-$83.5K is not neutral. Instead, it represents the current state of the market as it decides whether to continue the upward trend from the March lows or to stall and retreat again.
