Spot Bitcoin ETFs in the US recorded their highest outflows on January 8 as Bitcoin's price briefly fell below $93,000, causing market-wide panic.
Reasons Behind Record Outflows
According to data from SoSoValue, 12 spot Bitcoin ETFs saw $582.9 million in outflows on January 8, ending a three-day inflow streak that brought nearly $2 billion into these funds. This marked the largest outflows since December 19, when these investment products experienced $680 million in outflows.
Fund-Specific Dynamics
Fidelity’s FBTC led the outflows on January 8 with $258.69 million withdrawn. It was followed by ARK 21Shares’ ARKB, which saw $148.3 million in outflows. Even BlackRock’s IBIT, which had offset outflows from other BTC ETFs the previous day, recorded outflows of $124.05 million.
Impact on Bitcoin Price
The record outflows coincided with Bitcoin's price dip below $93,000 amid macroeconomic concerns, indicating potential tightening from the Federal Reserve.
Bitcoin ETF outflows add pressure on the asset's price, heightening bearish sentiment in the market. Analysts warn of a potential dip below the critical $95,000 support level.
