The crypto market is anticipating further developments following significant outflows from spot Bitcoin ETFs, coinciding with a decrease in Bitcoin prices.
Record Outflows from Bitcoin ETFs
On January 8, investors withdrew approximately $570 million from US-based spot Bitcoin ETFs. This marked the second-largest outflow after the $671.9 million withdrawals on December 19. The Fidelity Wise Origin Bitcoin Fund suffered the most with $258.7 million in withdrawals, and BlackRock’s IBIT Bitcoin ETF saw $124 million leave its reserves. Other affected funds included Bitwise’s BITB, Ark's ARKB, among others.
Market Situation and Causes
According to CoinGlass, $521 million in liquidations occurred over the past 24 hours. Analysts link this to concerns about US monetary policy tightening. Despite this, the Crypto Fear & Greed Index remains at 'Greed' at 69, indicating moderately positive market sentiment.
Market Reaction and Forecast
Bitcoin's price remains volatile after falling below $100,000. Analysts note the challenging start to 2025. Trader Daan Crypto Trades describes the beginning of the year as quite indecisive, with past scenarios showing market drops followed by rebounds.
While the cryptocurrency market remains unstable, investors and traders continue to monitor the developments influenced by both economic and speculative factors.
