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Cryptopolitan 2025-01-09 11:35:23

Bitcoin investors withdraw from spot ETFs at almost record rates as BTC corrects

Investors have withdrawn large portions of capital from spot Bitcoin ETFs (exchange-traded funds) as the price for the largest crypto by market cap fell below the $100K mark yesterday and has since struggled to recover. The selling pressure from ETF investors also led to a surge in liquidations in the crypto market over the past 24 hours. Bitcoin ETF outflows surge to $570 million Bitcoin investors withdrew almost $570 million from US-listed spot Bitcoin ETFs on Jan. 8, marking the second-largest daily new outflows for the investment products. According to Farside data , this substantial outflow trailed behind the $671.9 million withdrawals made on Dec. 19. The Fidelity Wise Origin Bitcoin Fund was impacted the most, accounting for 45% of the day’s outflows valued at $258.7 million. This was also the fund’s highest-ever single-day outflow. BlackRock’s IBIT Bitcoin ETF, which currently leads the funds in cumulative inflows, also took a knock after $124 million left its reserves. Other funds that suffered net daily outflows yesterday include Bitwise’s BITB, Ark’s ARKB, Invesco’s BTCO, Franklin’s EZBC and Grayscale’s converted GBTC fund. Of these funds, ARKB took the biggest hammering with its reserves dropping by $148.3 million. The remaining funds all recorded no new flows. Market sentiment continues despite massive liquidations CoinGlass data shows that $521 million in liquidations were triggered in the last 24 hours as the broader market underwent a correction. This pullback comes amid growing fears surrounding the US Federal Reserve’s monetary tightening agenda this year, according to analysts. “Bitcoin’s dip stems primarily from strong US economic data pointing toward potential interest rate hikes,” said Ryan Lee, Chief Analyst at Bitget Research. Despite these changes, market sentiment has remained reasonably bullish, The Crypto Fear & Greed Index , which tracks movement in the cryptocurrency market, is at 69, signaling ‘Greed’. While this is a decrease from last month’s ‘Extreme Greed’ score of 78, sentiment has not dropped to a great extent. Bitcoin’s price volatility continues to puzzle traders with some warning against making firm decisions from previous trends. Bitcoin reached a top price of $102,500 before losing its stability and falling to $92,500 yesterday, which became a new monthly low. Daan Crypto Trades described BTC’s recent movements as a pretty indecisive start to 2025. “This doesn’t say much yet, especially seeing December broke the trend and the start of the year is generally very choppy,” the trader said in a Jan. 9 X post. $BTC Last year, the market often bottomed (or topped) in the first week of the month. This was then followed by a large move to the other direction. Generally, we saw a sharp decline during the first few days of the month and a bounce after. June was the only month where price… https://t.co/92aFXAlUiY pic.twitter.com/m7gg1zW6Pd — Daan Crypto Trades (@DaanCrypto) January 8, 2025 According to CoinMarketCap, Bitcoin is currently hovering around $94,401 as of 4:10 a.m. EST. This is after the leading crypto dropped more than 2% in the last 24 hours. The recent correction was also a continuation of BTC’s negative weekly trend. As a result, Bitcoin is 2.82% in the red on the 7-day time frame as well. From Zero to Web3 Pro: Your 90-Day Career Launch Plan

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