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Bitcoin sees $671.9M ETF sell-offs after BTC crashes below $94K
A massive outflow of $671.9 million was recorded from U.S.-based Bitcoin exchange-traded funds (ETFs) on December 19, marking the largest single-day net outflow since their launch. This substantial sell-off event came in tandem with a dramatic decline in the price of Bitcoin.
Data provided by Farside Investors reveals that Fidelity’s FBTC led the outflows, losing a staggering $208.5 million. Grayscale’s GBTC and ARK Invest’s ARKB followed closely behind, experiencing outflows of $208.6 million and $108.4 million, respectively. BlackRock’s IBIT ETF remained untouched, with no reported net inflows or outflows.
The market sell-off coincided with significant price drops across the cryptocurrency spectrum. Bitcoin took a severe hit, plummeting 9.2% in the past 24 hours to settle around $93,145.17. Ethereum suffered an even steeper decline of 15.6%, while over $1 billion was liquidated across the market.
The net assets of Bitcoin ETFs dropped to $109.7 billion as of December 19, erasing the majority of gains seen earlier in the month. Despite this downturn, Bitcoin maintained its position as the leading cryptocurrency by a wide margin, retaining a dominant 57.4% share of the crypto market capitalization.
Federal Reserve policy and broader economic concerns have been cited as potential factors contributing to the turmoil. Market participants had anticipated a 0.25% interest rate cut from the Federal Reserve, but comments from Chairman Jerome Powell indicating a slower pace of monetary easing than initially expected sent shockwaves through the market. This uncertainty has also extended to traditional markets, with the S&P 500 experiencing a decline.
In the face of this market turmoil, some investors remain optimistic about recovery opportunities and have begun discussing the possibility of buying Bitcoin “on the dip”. Data from Santiment reveals that mentions of this phrase reached an eight-month high, similar to its previous peak in April.
Source: ambcrypto.com
