Spot Bitcoin ETFs saw $400 million in outflows on Thursday, following a six-day streak that attracted more than $4.7 billion as Bitcoin hit multiple all-time highs.
Bitcoin ETF Capital Flow Situation
Uneven Flows:BlackRock iShares Bitcoin Trust (#IBIT ): Recorded $125 million in inflows.VanEck Bitcoin ETF (HODL): Attracted another $2.5 million.Other funds: Including Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), and Grayscale Bitcoin Trust (GBTC), saw a total of $530 million in outflows.
Bitcoin Price Movement
Bitcoin crossed a historic $93,477 mark on Wednesday, surpassing the $93,000 threshold for the first time. However, the price has since fallen and hovered around $90,000, meeting strong resistance. The drop in the price of $BTC led to $444 million in liquidations from derivatives contracts betting on BTC's bullish trend.
Impact of US economic data
New economic data in the US has dampened hopes that the Federal Reserve (#fed ) will cut interest rates further this year. Expectations that the Fed will keep interest rates unchanged at the December FOMC meeting have increased from 25% to 41.3%, according to CME's FedWatch tool. This has turned market sentiment cautious, putting pressure on Bitcoin prices and Bitcoin ETFs.
Market outlook
Despite the negative impact of temporary capital outflows and inflation in the US, analysts from BRN are still optimistic that #Bitcoin can reach $100,000 in the next few months. Analyst Valentin Fournier commented: If the price of Bitcoin falls in the short term, this will be an attractive opportunity for investors to return to the market, adding new liquidity. Donald Trump's election victory is expected to be a big positive driver for the market, especially in Q1/2025, when his first policies can create strong momentum for a long-term growth cycle.
Conclude
Despite the challenges of temporary capital outflows and inflation, Bitcoin’s long-term potential is still huge. Bitcoin ETFs in the US, especially from large institutions like BlackRock, are leading the way in attracting capital, paving the way for the global popularity and legalization of cryptocurrencies.
