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Bitcoin sees $671.9M ETF sell-offs after BTC crashes below $94K
Record-breaking single-day net outflow marks the end of a 15-day streak of inflows for Bitcoin ETFs and an 18-day streak for Ethereum ETFs.
In a shocking turn of events, U.S. Bitcoin exchange-traded funds (ETFs) witnessed a record-breaking single-day net outflow of $671.9 million on December 19. This unprecedented event marked the end of a 15-day streak of inflows for Bitcoin ETFs and an 18-day streak for Ethereum ETFs.
Fidelity’s FBTC led the outflows, losing a staggering $208.5 million, while Grayscale’s GBTC and ARK Invest’s ARKB followed with outflows of $208.6 million and $108.4 million, respectively. In contrast, BlackRock’s IBIT ETF remained unchanged, reporting no net inflows or outflows.
The record-breaking outflow coincided with a sharp decline in the prices of both Bitcoin and Ethereum. Bitcoin plummeted 9.2% in the last 24 hours, settling around $93,145.17, while Ethereum experienced an even steeper 15.6% drop.
A staggering $1 billion was liquidated across the crypto market during this period, with Bitcoin’s dominance in the market reaching 57.4%. Despite the turbulence, it is clear that investors have lost confidence in both cryptocurrencies.
The sharp downturn in crypto markets has been linked to broader macroeconomic concerns. Investors anticipated a 0.25% interest rate cut from the U.S. Federal Reserve, but comments from Fed Chair Jerome Powell suggested a more cautious outlook. This unexpected hawkish sentiment affected not only crypto markets but also traditional financial markets, with the S&P 500 experiencing a decline.
As the situation unfolds, “buy the dip” discussions have reached their highest level in over eight months.
Source: ambcrypto.com
