{"id":30221,"date":"2024-12-21T10:30:17","date_gmt":"2024-12-21T10:30:17","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=30221"},"modified":"2024-12-21T10:30:17","modified_gmt":"2024-12-21T10:30:17","slug":"spot-bitcoin-etfs-bleed-6700-btc-exit-amidst-largest-outflow-in-months","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=30221","title":{"rendered":"Spot Bitcoin ETFs Bleed: 6,700 BTC Exit Amidst Largest Outflow In Months"},"content":{"rendered":"

Amid a wider readjusting of market expectations for interest rate cuts by the Federal Reserve (Fed) for 2025, investors withdrew a record $680 million from Bitcoin ETFs on Thursday, the highest outflow in a single day since January\u2019s approval of these investment funds.<\/a><\/p>\n

Grayscale And Bitwise Bitcoin ETFs Experience 8% Decline\u00a0<\/h2>\n

As Bitcoin ETFs faced this outflow, the price declined, dropping another 5% to trade around $97,400 to close the week. The sell-off aligns with a general downturn in risk assets, triggered by the Fed\u2019s updated economic projections<\/a> released earlier this week.\u00a0<\/p>\n

The US central bank now anticipates only two quarter-point rate cuts in the coming year, a significant reduction from the four cuts previously expected at its September meeting.<\/p>\n

Notable Bitcoin ETFs, including Grayscale\u2019s Bitcoin Trust and Bitwise\u2019s Bitcoin ETF, have experienced declines of approximately 8% since the Fed\u2019s new guidance, while Bitcoin itself has lost about 9% in the same timeframe.\u00a0<\/p>\n

Notably, Thursday\u2019s outflows broke a streak of 15 consecutive days of inflows <\/a>for the twelve US Bitcoin ETFs, for a net inflow of approximately $5.3 billion during this period.<\/p>\n

After hitting a record high of just over $108,000 earlier in this week, the market\u2019s top cryptocurrency dropped below the $100,000 level on Thursday. Prior to the recent recovery, which is just around $100,000, it fell all the way to $92,000.\u00a0<\/p>\n

While the bearish sentiment<\/a> in the markets can be attributed to the Fed\u2019s cautious stance, it is also likely influenced by seasonal profit-taking among institutional investors of the Bitcoin ETFs.\u00a0<\/p>\n

Analysts Warn Of Continued Crypto Sell-Off<\/h2>\n

The recent selling pressure could further strain market sentiment, as noted <\/a>by Joseph Dahrieh, managing principal at Tickmill. <\/p>\n

\u201cThis decline could weigh strongly on the cryptocurrency and broader market sentiment, particularly as Bitcoin fell below the USD 100,000 mark, indicating potential short-term volatility and downside risks,\u201d he remarked.<\/p>\n

The volatility has been exacerbated by massive liquidations <\/a>in both long and short positions, totaling over $240 million within a 24-hour period. Antonio Di Giacomo, a senior market analyst at XS.com, commented, \u201cThe Federal Reserve\u2019s cautious stance in signaling fewer cuts for 2025 created an atmosphere of doubt and speculation.\u201d<\/p>\n

Looking ahead, the sell-off in the cryptocurrency market may persist in the near term. Alex Kuptsikevich, chief market analyst at FxPro, speculated that the total market capitalization of cryptocurrencies could drop below $3 trillion, down from a peak of $3.7 trillion earlier this month.\u00a0<\/p>\n

He cautioned that \u201ca failure below $94,500 would signal a break of the uptrend <\/a>of the last six weeks, while a fall below $92,000 would bring the price under the 50-day moving average. In this case, time is playing on the side of the bears.\u201d<\/p>\n

As of this writing, Bitcoin has managed to stabilize above $97,400 as the week draws to a close, despite registering 4% losses over the previous 24 hours.<\/p>\n

Featured image from DALL-E, chart from TradingView.com <\/p>","protected":false},"excerpt":{"rendered":"

Amid a wider readjusting of market expectations for interest rate cuts by the Federal Reserve (Fed) for 2025, investors withdrew a record $680 million from Bitcoin ETFs on Thursday, the highest outflow in a single day since January\u2019s approval of these investment funds. Grayscale And Bitwise Bitcoin ETFs Experience 8% Decline\u00a0 As Bitcoin ETFs faced […]<\/p>\n","protected":false},"author":0,"featured_media":30222,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-30221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/30221"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30221"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/30221\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/30222"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}