Wednesday

Bitcoin

Grayscale Bitcoin Trust

Bitcoin faced major volatility on Wednesday, <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer nofollow">trading</a> around $61,500 during the Asian morning hours after dropping as low as $60,300 late Tuesday. This sharp decline comes amid heightened geopolitical tensions as the conflict in the Middle East intensifies, affecting investor sentiment and hopes for a rally in what has historically been Bitcoin’s strongest month.
<h2 id="span-style-font-weight-400-escalating-tensions-span">Escalating Tensions</h2>
The drop was triggered by Iran launching around 200 ballistic missiles toward Israel, following Israeli strikes on Lebanon over the past few weeks. Israel’s Prime Minister, Benjamin Netanyahu, responded with a vow to retaliate, raising fears of further escalation. The uncertainty surrounding these developments seems to have pushed investors toward safer assets like gold, which saw a rise, while Bitcoin plunged by over 6% at its lowest point. Within 24 hours, BTC recorded a 3.5% loss, its worst performance in over a month.
Analysts from Presto Research commented on the move, noting the unusual start to October, historically a bullish month for Bitcoin. However, the situation in the Middle East is overshadowing typical market behavior, causing more risk-averse moves from institutional investors.
<h2 id="span-style-font-weight-400-bitcoin-etfs-record-massive-outflows-span">Bitcoin ETFs Record Massive Outflows</h2>
A key indicator of the shift in sentiment has been the <a href="https://thecoinrise.com/spot-bitcoin-etfs-break-another-major-outflow-streak-with-263m-inflow/" rel="noopener noreferrer nofollow">massive outflows from U.S. spot Bitcoin exchange-traded funds (ETFs)</a>. On Tuesday, October 1, nearly $243 million was pulled from Bitcoin ETFs, according to <a href="https://farside.co.uk/btc/" rel="noopener noreferrer nofollow">data</a> from Farside Investors. This marks the largest outflow in a month, with the last significant withdrawal occurring on Sept. 3, when $288 million exited these funds.
The outflows are notable in their timing. Over the past five months, this was the third-largest outflow day, halting a promising eight-day streak of inflows that peaked at $494 million on September 27.
Fidelity’s ETF was hit hardest, with $144.7 million in withdrawals. ARK 21Shares ETF followed, losing $84.3 million, while Bitwise’s ETF saw $32.7 million leave its portfolio. VanEck’s Bitcoin ETF reported $15.8 million in outflows, and the Grayscale Bitcoin Trust experienced a $5.9 million dip. Meanwhile, other ETFs like Invesco, Franklin, and Valkyrie saw no movement.
Interestingly, BlackRock’s iShares Bitcoin Trust defied the trend, continuing to post positive flows. It reported $40.8 million in inflows, marking its 15th consecutive day without outflows, signaling a glimmer of institutional confidence amidst the broader market’s retreat.
While historically <a href="https://thecoinrise.com/crypto-market-braces-for-1-3-billion-token-unlocks-in-october/" rel="noopener noreferrer nofollow">October has been a strong month</a> for Bitcoin, ongoing conflict and investor caution could limit BTC’s potential for a recovery. Institutional investors will likely keep a close eye on developments in the Middle East, with further outflows expected if the situation worsens.
The post <a href="https://thecoinrise.com/bitcoin-slips-below-61k-amid-middle-east-conflict-sees-massive-etf-outflows/" rel="noopener noreferrer nofollow">Bitcoin Slips Below $61K Amid Middle East Conflict, Sees Massive ETF Outflows</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Bitcoin Slips Below $61K Amid Middle East Conflict, Sees Massive ETF Outflows

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