news 
Bitcoin ETFs Post Record Single-Day Outflows as Sentiment Sours After Fed Meeting
U.S.-listed Bitcoin exchange-traded funds (ETFs) have witnessed their largest-ever single-day net outflow, with investors pulling approximately $671.9 million from these products on December 19. This significant withdrawal comes just a few days after the cryptocurrency touched an all-time high of over $108,000 earlier in the week.
Data provided by Farside Investors reveals that various funds have been impacted by this sudden shift in investor sentiment. According to the data, Fidelity’s Bitcoin ETF experienced a net outflow of about $208.5 million on December 19, while ARK’s offering saw redemptions of roughly $123.4 million. Bitwise’s product suffered an outflow of approximately $41.9 million.
The catalyst behind this unprecedented sell-off appears to be the Federal Reserve’s recent meeting, where policymakers signalled a potential pause in interest rate hikes. The resulting uncertainty has led investors to re-evaluate their positions and withdraw capital from these products.
Despite the short-term volatility, some experts remain optimistic about Bitcoin’s long-term prospects. Matt Houghan of Bitwise emphasized that “The drivers of the bull market are long-term and fundamental, while the drivers of the pullback are short-term and tactical. That makes the pullback an opportunity, not a reversal.”
It is worth noting that this latest trend may be part of a larger repositioning strategy among investors. Some analysts have pointed out that certain funds had already been shedding their Bitcoin holdings earlier in the year, suggesting that this current sell-off could be a continuation of this trend.
In the context of the impending regulatory changes, some experts believe that any uncertainty could lead to further short-term market fluctuations. However, they stress that such changes would ultimately have no bearing on Bitcoin’s fundamental value and long-term potential for growth.
Despite the uncertainty surrounding regulatory developments, many remain confident about Bitcoin’s ability to recover from this setback.
Source: bravenewcoin.com
