6,700 BTC Exit Amidst Largest Outflow In Months
Investors pulled a record $680 million from Bitcoin ETFs on Thursday, the most in a single day since the funds were approved in January, amid a broader market correction in expectations for a 2025 interest rate cut from the Federal Reserve. outflow. investment funds.
Grayscale and Bitcoin ETF down 8%
Prices fell as the Bitcoin ETF faced outflows, closing the week down another 5%, trading around $97,400. The sell-off is consistent with a broad decline in risk assets triggered by the Federal Reserve’s policies. Updated economic forecasts Released earlier this week.
The Fed now expects just two interest rate cuts next year, a sharp reduction from the four rate cuts it had expected at its September meeting.
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Prominent Bitcoin ETFs, including Grayscale’s Bitcoin Trust and Bitwise’s Bitcoin ETF, have fallen about 8% since the Fed issued the new guidance, while Bitcoin itself has fallen about 9% in the same time frame.
Notably, Thursday’s outflows broke a streak Capital inflow for 15 consecutive days The 12 U.S. Bitcoin ETFs saw a net inflow of approximately US$5.3 billion during this period.
The market’s top cryptocurrency fell below the $100,000 level on Thursday after hitting an all-time high of just over $108,000 earlier this week. It was only around $100,000 before the recent recovery, and then dropped all the way to $92,000.
Although bearish sentiment The market’s volatility may be attributed to the Federal Reserve’s cautious stance, or may be affected by seasonal profit-taking by institutional investors in Bitcoin ETFs.
Analysts warn of continued cryptocurrency sell-off
The recent selling pressure may further impact market sentiment as famous By Joseph Dahrieh, Executive Director of Tickmill.
“Such a decline could have a serious impact on cryptocurrencies and broader market sentiment, especially if Bitcoin falls below the $100,000 mark, signaling potential short-term volatility and downside risks,” he said.
Massive volatility intensifies liquidation Long and short positions totaled more than $240 million in 24 hours. Antonio Di Giacomo, senior market analyst at XS.com, commented: “The Fed’s cautious stance in signaling fewer rate cuts in 2025 has created an atmosphere of skepticism and speculation.”
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Looking ahead, the sell-off in the cryptocurrency market is likely to persist in the short term. Alex Kuptsikevich, chief market analyst at FxPro, speculated that the total cryptocurrency market capitalization could fall below $3 trillion, down from a peak of $3.7 trillion earlier this month.
He warned that “a fall below $94,500 would mark a price breakout” uptrend prices over the past six weeks, while a break below $92,000 would put the price below the 50-day moving average. In this case, time is on the short side. “
As of this writing, Bitcoin has managed to stabilize above $97,400 as the week comes to a close, despite falling 4% in the past 24 hours.
Featured images from DALL-E, charts from TradingView.com
