Spot Bitcoin exchange-traded funds in the United States experienced a significant outflow on January 8, marking their highest outflow day in the past three weeks. This came as Bitcoin briefly dipped below $93,000, causing panic among investors across the market.
Data from SoSoValue revealed that the 12 spot Bitcoin ETFs saw a total outflow of $582.9 million on Tuesday, breaking a three-day streak of inflows that had brought in nearly $2 billion. This outflow was the highest since December 19, when these investment products saw $680 million in outflows.
Among the ETFs, Fidelity’s FBTC led the outflows with $258.69 million withdrawn from the fund, followed by ARK 21Shares’ ARKB with $148.3 million. Even BlackRock’s IBIT, which had managed to offset outflows from other BTC ETFs the previous day, experienced outflows of $124.05 million on January 8.
Additionally, Valkyrie’s BRRR and Bitwise’s BITB funds also saw withdrawals of $14.1 million and $11.26 million, respectively. More modest outflows were observed in Invesco Galaxy’s BTCO, Grayscale’s GBTC, and Franklin Templeton’s EZBC, with $9.38 million, $8.94 million, and $8.17 million, respectively.
The daily trading volume for these ETFs stood at $3.4 billion on January 8, lower than the $4.62 billion recorded on the previous trading day. The record outflows coincided with Bitcoin’s price dropping below $93,000 amidst macroeconomic concerns and speculations of a more hawkish stance from the Federal Reserve under the incoming administration.
As a result of the bearish news and significant outflows, Bitcoin (BTC) saw a 1.4% decline, trading slightly above $94,000 at the time of writing. Analysts predict that a drop below the key support level of $95,000 could trigger further downside for Bitcoin, with a potential target of $88,000.
Overall, the market volatility and investor sentiment surrounding Bitcoin ETFs reflect the ongoing uncertainty and challenges faced by the cryptocurrency market. It remains to be seen how these developments will impact the future performance of Bitcoin and other digital assets.