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Bitcoin Sees $671.9M ETF Sell-Offs After BTC Crashes Below $94K
In a shocking turn of events, the United States’ Bitcoin exchange-traded funds (ETFs) witnessed an unprecedented single-day net outflow of a staggering $671.9 million on December 19th. This extraordinary sell-off coincided with a sharp decline in Bitcoin’s price, which plummeted by a whopping 9.2% to settle around $93,145.17.
The record-breaking ETF outflows have brought an end to the 15-day streak of inflows for BTC ETFs and the 18-day streak for Ethereum [ETH] ETFs. Data from Farside Investors reveals that Fidelity’s FBTC led the way, suffering a staggering loss of $208.5 million. Grayscale’s GBTC and ARK Invest’s ARKB followed closely behind with outflows of $208.6 million and $108.4 million respectively. In stark contrast, BlackRock’s IBIT ETF remained unaffected by the market downturn, recording no reported net outflows or inflows.
The unprecedented sell-off comes on the heels of a significant decline in Bitcoin’s value, as well as Ethereum’s, with the latter plunging by an alarming 15.6%. It is essential to note that over $1 billion was liquidated across the crypto market within this time frame. This drastic shift also caused Bitcoin’s total net assets to plummet from $121.7 billion to $109.7 billion as of December 19th.
The dramatic downturn has reinforced Bitcoin’s dominance in the crypto market, with its share increasing by 0.5% to reach a new high of 57.4%. Despite this, experts are quick to note that these turbulent times have also highlighted the potential for long-term investment opportunities in the rapidly evolving digital asset space.
Market insiders point to broader macroeconomic concerns as key factors driving this unprecedented sell-off. The Federal Reserve’s hawkish stance on interest rates has raised concerns among investors, prompting a reevaluation of their portfolios. It is crucial to remember that Jerome Powell’s comments hinting at only two rate cuts in 2025 have led to increased uncertainty and subsequently, risk aversion.
In spite of the market turmoil, an intriguing trend has emerged as analysts observe a surge in “buy the dip” discussions across social media platforms. According to data from Santiment, this sentiment reached its highest level in over eight months. This phenomenon is eerily reminiscent of the peak seen in April when Bitcoin’s value fell from $70,000 to $67,000 before embarking on another decline.
The question remains whether this renewed optimism will be enough to spark a recovery in the crypto market or if it merely represents a fleeting moment of hope.
Source: ambcrypto.com
