Market Turmoil: Bitcoin ETFs Record Largest Daily Outflows of 2024 Amid Unprecedented Liquidations
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Bitcoin ETFs Record Largest Daily Outflows of 2024 as Market Liquidations Top $1B
The cryptocurrency market has been rocked by unprecedented liquidations, with over $1 billion in losses within a 24-hour period. CoinGlass data revealed that the majority of these liquidations, approximately $856.66 million, were from long positions, indicating that bullish traders were caught off guard by the sudden price dip.
Bitcoin’s price plummeted to a low of $94,073, reflecting an 8.43% decline, while other major cryptocurrencies like Ethereum (ETH) and Solana (SOL) also suffered significant losses. The market turbulence was further exacerbated by the U.S. Federal Reserve’s hawkish stance on monetary policy for 2025.
The Fed’s announcement of only two rate cuts in 2025, down from the anticipated four, led to increased market volatility and a reassessment of market expectations. This shift in sentiment contributed to the sell-off in both the stock and crypto markets as investors sought to reduce their exposure to risk assets.
In tandem with this market turmoil, Bitcoin ETFs recorded the largest daily outflows of 2024, indicating a significant withdrawal of funds from these investment vehicles. The record-breaking outflows signal that institutional investors and individual traders are reassessing their positions in response to the sudden price decline.
The recent correction may have been an overreaction, as some analysts suggest that Bitcoin could recover post-Christmas. Alex Kruger, a renowned economist, highlighted that euphoria and leverage have been largely flushed out from the crypto market, which should minimize the downside risks.
Despite this, the current market conditions remain uncertain, with Bitcoin’s price falling below $100,000 and major altcoins suffering significant losses. As the market navigates these turbulent times, it is crucial to monitor developments closely to determine whether the recent correction will mark a turning point or simply a minor setback.
The record outflows from Bitcoin ETFs serve as a warning sign that investors are reassessing their risk exposure in response to the sudden downturn. This heightened caution may lead to further price volatility and market uncertainty, making it essential for traders and investors to remain vigilant and adapt to the rapidly evolving landscape.
Source: crypto-economy.com
