On October 2, 2024, Bitcoin exchange-traded funds (ETFs) experienced their first net outflows in two weeks, with $243 million exiting the market.
Bitcoin ETF Outflows
On October 2, 2024, Bitcoin ETFs saw $243 million in outflows, marking the first net outflows in two weeks. This ended an eight-day streak of net inflows for U.S. spot Bitcoin ETFs and represented the largest outflow since early September.
Bitcoin Price Drop
Along with the outflows, Bitcoin's price significantly dropped over 4%. A large Bitcoin holder offloaded more than $46 million on Binance, despite still holding a substantial stash of 9,736 BTC valued at over $601 million. Bitcoin's price dipped to around $60,300 from previous highs above $64,000, marking the steepest decline since early September.
Impact of Geopolitical Situation
The drop in Bitcoin's value and the ETF outflows coincided with escalating geopolitical tensions in the Middle East, particularly following Iran's attack on Israel. This reflects the market's sensitivity to external factors and investor sentiment.
These events highlight the increased volatility and sensitivity of the cryptocurrency market to geopolitical events and shifts in investor sentiment.
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