Bitcoin ETF Outflows Surge as Price Falls Below $100K
Table of contents
Massive Outflows From Bitcoin ETFs
On January 8, Bitcoin ETF investors pulled $570 million from US-listed funds, marking the second-largest single-day outflow for such investment products. Fidelity’s Wise Origin Bitcoin Fund was hardest hit, losing $258.7 million, its largest-ever daily withdrawal.
Other prominent funds, including BlackRock’s IBIT Bitcoin ETF, Bitwise’s BITB, and Ark’s ARKB, also saw substantial outflows. BlackRock’s IBIT lost $124 million, while ARKB dropped $148.3 million. These movements reflect growing caution among investors as market volatility persists.
Broader Market Impact
The selling pressure triggered $521 million in liquidations over 24 hours, as per CoinGlass data. Analysts attribute the price correction to concerns over the US Federal Reserve's potential interest rate hikes, which are influenced by robust economic data.
Despite the turbulence, market sentiment remains optimistic. The Crypto Fear & Greed Index stands at 69, indicating ‘Greed,’ though it has cooled from last month’s ‘Extreme Greed’ level of 78.
Bitcoin’s Price Struggles
Bitcoin’s price volatility has perplexed traders, with its recent dip to $92,500 marking a new monthly low. Currently, BTC is trading around $94,401, down more than 2% in the last 24 hours. Over the past week, Bitcoin’s value has declined by 2.82%, continuing its downward trend.
As market conditions evolve, traders and investors are advised to tread cautiously, given Bitcoin's choppy start to 2025.