US Bitcoin ETFs experienced their largest outflow of $1 billion as Bitcoin's price fell below $90,000.
Bitcoin ETF Outflows
According to data from SoSoValue, significant outflows were observed in 10 out of 12 bitcoin funds, with Fidelity FBTC leading with $344.65 million. The downturn also affected BlackRock's IBIT fund with an outflow of $164.3 million.
Market Downturn
Various funds like Bitwise Bitcoin ETF and Grayscale also experienced outflows. Over $151.9 million were pulled from Grayscale funds, with $66.1 million attributed to Grayscale Bitcoin Trust. Franklin Templeton, Invesco, and other funds were also affected.
Factors Leading to the Decline
Analysts attribute the downturn to factors like profit-taking after a successful 2024. Profit-taking could have led to subsequent price drops. Expert Rachael Lucas noted possible institutional rebalancing and the influence of macroeconomic factors such as trade tensions and Federal Reserve rates.
The impact of the record Bitcoin ETF outflows shows its significant effect on short-term prices, though experts believe it may not indicate a sustained bear market.
