Bitcoin is back in the spotlight with a dramatic price recovery, even as ETFs linked to the asset see significant outflows.
Impact of BlackRock's ETF Outflows
BlackRock's ETF recorded its largest outflow of $188.7 million on December 25, surpassing a previous record. U.S.-based Bitcoin ETFs suffered four consecutive days of outflows, totaling $338.4 million, raising bearish signals as traders speculate during the low-liquidity holiday season.
Bitcoin's Optimistic Price Recovery
Despite ETF outflows, Bitcoin price has shown resilience, surging from $94,000 to $99,000 within 24 hours. As optimism grows, analysts monitor the $100,000 level, mindful of potential profit-taking.
Institutional Investor Role Amid Uncertainty
Institutional players continue to invest heavily, with companies like MicroStrategy leading the way. The upcoming options expiry for 147 BTC on Deribit could apply more pressure, with traders preparing for 2023.
The Bitcoin market is navigating a volatile period with significant ETF outflows, a recovering price, and heightened institutional interest. The market remains closely watched for future developments.
