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Bitcoin ETFs Bleed Funds as BTC’s $100K Rally Stalls Post-Election
The past week has been nothing short of extraordinary for the cryptocurrency market. The sudden and unanticipated surge in Bitcoin’s [BTC] price saw it touch the milestone $100,000 mark for the first time ever. This rapid ascent was accompanied by massive inflows into spot BTC exchange-traded funds (ETFs), signaling an unprecedented level of investor enthusiasm.
However, the momentum has taken a dramatic turn in the past few days. Bitcoin ETFs have recorded four consecutive days of outflows, starting on December 19th, with a staggering $671.9 million in withdrawals. According to the latest data from Farside investors, December 24th witnessed a significant exodus from BTC ETFs, totaling an astonishing $338.4 million, primarily driven by major players.
Notably, BlackRock’s IBIT led the way, shedding a substantial $188.7 million worth of its holdings. Fidelity’s FBTC followed closely behind with outflows amounting to $83.2 million, while ARK 21Shares’ ARKB suffered losses totaling $75 million. Meanwhile, Bitwise’s BITB, in an unexpected turn, managed to defy the trend by reporting inflows of a paltry $8.5 million.
The sharp reversal from inflows to outflows coincides with a significant price drop for Bitcoin, which dipped as low as $94K on December 24th. This decline has led many market observers to question whether institutional investors are losing interest in the flagship cryptocurrency.
It is worth noting that this recent slump occurs amid growing predictions of a slowdown in the crypto market. Historical data suggests that U.S. election years typically witness a post-election rally, followed by a gradual erosion of momentum. Bloomberg and Macrobond Financial’s analysis reveals an uncanny resemblance to past election cycles, where assets such as stocks and cryptocurrencies, including Bitcoin, experience an initial surge before succumbing to the gravity of reality.
Despite this gloomy outlook, recent data indicates that Bitcoin may be on the cusp of a reversal. In the last 24 hours, BTC has registered a 4.18% gain, bringing its price to $99,000. This sudden upswing could signal a turning point for Bitcoin ETFs, which have been struggling in recent days.
In a stark contrast to the tumultuous performance of its primary competitor, Ethereum [ETH] has managed to maintain stability around the $3,400 mark, while Bitcoin edges closer to the critical threshold of $100,000.
Source: ambcrypto.com
