Spot Bitcoin ETFs Rocked By Outflows, BTC Price Succumbs To Bears
26 Abril 2024 - 11:00AM
NEWSBTC
The Spot Bitcoin ETFs have seen their demand drop since the start
of this month, and this was again evident in the considerable
outflows recorded on April 26. This poor run has had far-reaching
effects on the broader crypto market as Bitcoin’s price has
succumbed to unfavorable market conditions. Spot Bitcoin ETFS
Record $217 Million Of Outflows Farside Investors revealed in an X
(formerly Twitter) post that the Spot Bitcoin ETFs recorded $217
million of net outflows on April 25, one of their largest this
month. Grayscale’s Bitcoin Trust (GBTC) accounted for most of these
outflows, with investors moving $139.4 million out of the
fund. Related Reading: Why Is The Dogecoin Price Down Today?
Some other funds also recorded individual outflows. Ark Invest’s
Spot Bitcoin ETF recorded $31.3 million in outflows, while Valkyrie
and Bitwise’s ETFs saw $20 million and $6 million in daily
outflows, respectively. Notably, Fidelity’s Wise Origin Bitcoin
Fund (FBTC) recorded a net daily outflow for the first time since
these funds were approved, with $22.6 being moved out of the fund
on Thursday. Meanwhile, BlackRock’s dry spell continued with
its iShares Bitcoin Trust (IBIT) recording zero inflows for the
second consecutive day. Although the fund has yet to record net
daily outflows since launching, this undoubtedly represents a
setback, considering that it had, before April 24, recorded 71
consecutive days of daily inflows. These Spot Bitcoin ETFs’
outflows have led to a wave of sell-offs from the fund issuers to
fulfill redemptions. As a result, Bitcoin’s price action has been
rather unimpressive as of late, with the flagship crypto
experiencing significant price declines due to the heightened
selling pressure. This development has put the bears firmly in
control, with data from Coinglass showing that more Bitcoin longs
than shorts have been liquidated in the last 24 hours. Macro
Economic Factors Also Affecting Bitcoin’s Price An initial estimate
released by the Bureau of Economic Analysis on April 25 showed that
the US Gross Domestic Product (GDP) grew at an annual rate of 1.6%
in the first quarter, which was way below expectations. This data
report further diminishes hopes of rate cuts this year and looks to
have played out in investors’ minds as Bitcoin briefly dropped
below $63,000 following the report’s release. Related
Reading: HBAR Prices Crashes 35% As BlackRock Denies Any Ties To
Hedera Meanwhile, the Personal Consumption Expenditures (PCE)
inflation data is set to be released on April 26. This PCE report
could come in higher than expectations, adding to the growing
concerns about the unlikelihood of rate cuts this year. Interest
rates have significant implications on risk assets, including
crypto, and if the Federal Reserve decides to take a hawkish
stance, it could negatively impact the crypto market. BTC
price falls toward $63,000 | Source: BTCUSD on Tradingview.com
Featured image from Islam and Bitcoin, chart from Tradingview.com
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