Sosovalue reported that the Bitcoin spot ETFs had a single-day outflow of $680,000,000 on Thursday. This was the highest ever outflow.
The ETF withdrawals were caused by the Federal Reserve Chairman Jerome Powell adopting a more hawkish position, which ended a streak of 15 days of net inflows. This highlights a change in market sentiment.
Bitcoin, after demonstrating strong upward momentum in the past 30 day, has now fallen below the crucial psychological $100,000 mark. Bitcoin is currently trading at about $95,300.
Bitcoin Charting a Different Course
In an email, Petr Kozyakov said that Powell slammed any idea of a US Central Bank having a “Strategic Bitcoin Reserve” and also indicated a slower rate cut pace next year.
“The largest cryptocurrency has a weight and dimension that are far different from its original form, when crypto-anarchists or cypherpunks traded ‘digital money’ on the internet. “After the launch of Bitcoin ETFs and the heavy interest from institutions in the US, bitcoin has taken a different path,” said Kozyakov.
Ethereum Spot ETFs see similar outflows
Ethereum spot ETFs also reported a net outflow, this time of $60.47million, after 18 days of steady inflows.
Ethereum was also affected, with its spot ETF withdrawals signaling caution among investors. Ethereum is the second largest cryptocurrency in terms of market capitalization. Market participants are watching macroeconomic and key support levels closely as the crypto market experiences increased volatility.
The outflows indicate that investors may be cautious for the near term, as they consider the macroeconomic impact and potential further declines.
Ethereum was also affected, with its spot ETF withdrawals signaling caution among investors. Ethereum is the second largest cryptocurrency in terms of market capitalization. The crypto market as a whole is experiencing volatility.
The outflows indicate that investors will remain cautious for the foreseeable future as they consider the macroeconomic impact and potential for further declines.
