Bitcoin spot ETFs experienced a record-breaking single-day net outflow of $680 million on Thursday, marking the highest outflow in history, according to data from Sosovalue.
The ETF outflows were triggered by a more hawkish stance from Federal Reserve Chair Jerome Powell, ending a 15-day streak of net inflows, this highlights a shift in market sentiment.
Bitcoin, which had demonstrated strong upward momentum over the past 30 days, slipped below the critical $100,000 psychological mark. As of now, Bitcoin is trading at approximately $95,300.
Bitcoin Now Charting a Very Different Course
“Powell poured cold water on any prospect of the US Central Bank holding a so-called Strategic Bitcoin Reserve while also signalling a slower pace of rate cuts next year,” said Petr Kozyakov, co-founder and CEO at Mercuryo, in an email.
“The biggest cryptocurrency now carries a weight and dimensions that make it far removed from its early form when crypto-anarchists and cypherpunks used the internet to trade ‘digital cash’. After the launch of a flurry of Bitcoin ETFs in the US earlier this year and heavy institutional interest, bitcoin is now charting a very different course,” said Kozyakov.
Ethereum Spot ETFs See Similar Outflows
Similarly, Ethereum spot ETFs reported a net outflow of $60.47 million, the first outflow after an 18-day period of consistent inflows.
Ethereum also felt the impact, as its spot ETF outflows signal caution among investors in the second-largest cryptocurrency by market capitalization. With the broader crypto market experiencing heightened volatility, market participants are closely watching key support levels and macroeconomic developments.
These outflows suggest that investor sentiment may remain cautious in the short term as they weigh the impact of macroeconomic factors and the potential for further declines.
Ethereum also felt the impact, as its spot ETF outflows signal caution among investors in the second-largest cryptocurrency by market capitalization. The broader crypto market is experiencing volatility.
These outflows suggest that investor sentiment will remain cautious in the short term as they weigh the impact of macroeconomic factors and the potential for further declines.
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