Spot Bitcoin ETFs experienced significant outflows amounting to $713 million last week, a stark rise from the $172.69 million outflows seen the prior week. This movement came as institutional investors withdrew capital from BTC funds amidst market turbulence, keeping Bitcoin's price below $85,000 and sometimes dropping it to $74,000.

The largest outflow was from BlackRock's IBIT with $343 million, followed by Grayscale's GBTC with $161 million. Despite the overall trend of outflows, Grayscale's Bitcoin Mini Trust showed net inflows of $2.39 million, bucking the trend.

In the derivatives market, BTC's futures open interest has decreased to $55.73 billion, reflecting short-term caution among traders as positions are being closed rather than opened. Though funding rates are positive, indicating prevailing long positions in perpetual futures, a bearish sentiment is noticeable in the options market with more put contracts than call contracts.

The combination of ETF outflows, decreasing open interest, and bearish options positioning suggests a cautious sentiment prevailing in the Bitcoin market, despite some hints of optimism from the funding rate. Traders are bracing themselves for heightened volatility ahead.