Bitcoin ETFs Bleed With Historic $211 Million Outflows

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As a seasoned crypto investor with a decade of experience navigating the volatile digital asset landscape, I must admit that the recent outflows from spot Bitcoin ETFs have left me somewhat concerned. The lack of inflows for an entire week has created an air of uncertainty that is all too familiar to those who have been in this game for a while.

Over the past week, Bitcoin ETF investments have seen a prolonged period of outflows, lasting seven days without any new inflows. This has led to apprehension within the Bitcoin (BTC) community, as uncertainty arises about the market’s direction. The crypto market is already experiencing weak performance, with Bitcoin (BTC) currently trading at $56,672 – a relatively low price point.

The significant withdrawal of funds from ETFs is fueling the persistent market turbulence. As per the recent figures from SosoValue, spot Bitcoin ETFs recorded a total net withdrawal of $211 million on September 5, marking a seven-day streak of such withdrawals. Additionally, Grayscale’s GBTC experienced an outflow of approximately $23.2175 million during this period.

In contrast to BlackRock’s IBIT maintaining a daily inflow at zero, Fidelity’s FBTC experienced a substantial withdrawal of approximately $149 million. Similarly, Bitwise’s BITB also saw a withdrawal of around $30 million. These statistics suggest that institutional investors are remaining cautious and have been preferring to stay on the sideline due to lingering pessimism.

At present, the combined value of Bitcoin spot ETFs stands approximately at $50 billion. Although this figure is considerable given their launch in January, there hasn’t been much expansion recently. This slow development in Bitcoin ETFs has hindered the overall growth of the cryptocurrency market as negative sentiments persist.

Bitcoin price faces bearish pressure

Currently, Bitcoin’s price has dropped by 4.74% over the last week, now standing at $56,672. As previously noted, it has slipped below the crucial support area around $60,000, which had been sustaining its upward trend. This could potentially lead to additional declines and further dips in Bitcoin’s price.

In addition, approximately 39.53 million dollars worth of Bitcoin was sold off over the past day, with 27.55 million of that amount coming from long positions. This means that investors who held long positions suffered significant losses during this period. At present, Bitcoin appears to be in a prolonged consolidation phase, and it seems unlikely that there will be a trend reversal anytime soon.

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2024-09-06 17:42