Bitcoin ETFs Witness Major Outflows Amid Market Uncertainty

Investors pulled $582 million from U.S.-listed Bitcoin ETFs on Wednesday, marking the second-largest outflow since their inception. Fidelity’s FBTC led the withdrawals with $258 million, while BlackRock’s IBIT recorded $124 million in outflows. Ether ETFs also saw significant withdrawals, totaling $159.3 million.

Renewed Inflation Fears Impact Crypto Markets

Macroeconomic uncertainties and renewed U.S. inflation fears have created headwinds for cryptocurrencies. Minutes from the Federal Reserve’s December meeting highlighted concerns over inflationary pressures, compounded by anticipated policies under President-elect Donald Trump.

Bitcoin Price Drops Below $100,000

Bitcoin’s price has fallen nearly 8.5% over the past three days, struggling to sustain levels above $100,000. This decline reflects a broader risk-off sentiment, as bond market volatility intensifies.

Analysts Remain Cautiously Optimistic

Despite the outflows, some analysts anticipate a market rebound. The upcoming U.S. nonfarm payrolls report on Friday is expected to provide crucial insights into economic health.

• Valentin Fournier, Analyst at BRN: “We recommend maintaining a strong exposure to Bitcoin, as it remains better positioned than Ethereum in this volatile market.”

Looking Ahead

As markets digest inflation concerns and await further clarity from economic data, Bitcoin remains a focal point for investors navigating uncertain conditions. While ETFs face outflows, long-term optimism persists for the leading cryptocurrency.