Bitcoin ETF

Bitcoin

Spot

The once-celebrated inflow streak of <a href="https://thecoinrise.com/bitcoin-etf-surpass-500000-btc-in-cumulative-net-inflows/">US Spot Bitcoin Exchange-Traded Funds</a> (ETFs) abruptly halted this week. After Bitcoin’s sharp price drop, BlackRock’s Bitcoin ETF (IBIT) and Fidelity’s FBTC saw record-breaking outflows, hinting at declining institutional confidence. This marks a sharp turn from months of bullish growth driven by Bitcoin’s rally and hopes for a US Bitcoin Strategic Reserve. 
<h2 id="b-a-sudden-shift-in-bitcoin-etf-dynamics-b">A Sudden Shift in Bitcoin ETF Dynamics</h2> 
US Spot Bitcoin ETFs were on a winning streak for over two weeks, raking in steady inflows that symbolized growing confidence in the world’s largest crypto. On December 18, this streak ended.&nbsp; 
On December 19, 2024, U.S. spot Bitcoin ETFs recorded a staggering net outflow of approximately $671.9 million. This marked the largest single-day withdrawal since their inception earlier this year.&nbsp; 
This trend continued the following day, with an additional outflow of around $277 million. Fidelity’s FBTC led the withdrawals, experiencing an outflow of $208.6 million, followed by Grayscale’s Bitcoin Mini Trust with $188.6 million.&nbsp; 
BlackRock’s IBIT ETF recorded its largest single-day outflow of $72.7 million, and Ark Invest’s ARKB was no exception. The correlation between Bitcoin’s price and ETF flows shows that institutional investors reevaluate their investments due to economic factors.&nbsp; 
The end of a 16-day inflow streak highlights the impact of these changes. It also shows how sensitive the crypto market is to broader economic shifts. 
<h2 id="b-market-volatility-and-investor-sentiment-b">Market Volatility and Investor Sentiment</h2> 
These notable outflows happened alongside a drop in Bitcoin’s price below $100,000, triggered by the Federal Reserve’s cautious policy stance. This shift affected investor confidence in riskier assets like cryptocurrencies.&nbsp; 
Despite the short-term volatility, Bitcoin remains a focal point for institutional and corporate players. Companies like MicroStrategy continue to expand their BTC holdings. At the same time, miners such as <a href="https://thecoinrise.com/mara-holdings-makes-fresh-1-53b-bitcoin-purchase/'">Marathon Holdings </a>and <a href="https://thecoinrise.com/hut-8-boosts-bitcoin-holdings-to-1b-with-990-btc-purchase/">Hut 8</a> have doubled down on their accumulation strategies. 
Reportedly, <a href="https://thecoinrise.com/bitcoin-faces-supply-shock-cryptoquant-teases-ripple-effect/">investors in Bitcoin have refused to sell their coins</a> despite the sharp price decline. This shows resilience amid the market’s current challenges. 
Additionally, Bitcoin is gaining attention globally, with Europe, Russia, and Japan considering a Bitcoin reserve similar to that of the US. Despite short-term market fluctuations testing investor confidence, these moves highlight Bitcoin’s growing importance as a strategic asset. 
<h2 id="b-a-temporary-setback-or-a-new-trend-b">A Temporary Setback or a New Trend?</h2> 
According to market analysts, Bitcoin’s long-term outlook remains robust despite the turbulence. Analysts think the current pullback is a temporary setback caused by short-term recent market conditions.&nbsp; 
Bitcoin’s resilience is clear as it rebounded 6.11% to $98,232 after dropping to $92,175 in the last 24 hours, per <a href="https://coinmarketcap.com/currencies/bitcoin/">CoinMarketCap data</a>. However, CoinGlass data shows that Bitcoin Futures’ open interest remains low, indicating caution among investors. 
The post <a href="https://thecoinrise.com/bitcoin-etf-break-inflow-streak-as-market-turmoil-deepen/">Bitcoin ETFs Break Inflow Streak as Market Turmoil Deepen</a> appeared first on <a href="https://thecoinrise.com/">TheCoinrise.com</a>.

Bitcoin ETFs Break Inflow Streak as Market Turmoil Deepen

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