US-listed spot Bitcoin ETFs experienced their first net outflows since July 13, marking a $225M decline. This comes after attracting nearly $1B over the past seven days.
After a week of strong inflows, US-listed spot Bitcoin exchange-traded funds (ETFs) saw their first daily net outflow since July 13, with SoSoValue reporting $225.2 million in net outflows on Thursday. This marks a significant shift from the previous seven trading sessions where these ETFs had attracted approximately $974.8 million in total inflows.
The outflows occurred as Bitcoin's price briefly dipped below the psychologically important level of $65,000 following renewed tensions between the US and Iran, which caused broader market volatility. By Thursday’s close, Bitcoin was trading at $65,403 after hitting a low of $64,600 during the day according to CoinGecko.
While the ETFs experienced outflows on this particular day, they still recorded net inflows for the week amounting to about $274 million. In contrast, US-listed spot Ether ETFs continued their positive trend, attracting a further $26.3 million in net inflows over the same period.
The market sentiment weakened slightly as reflected by the Crypto Fear & Greed Index, which fell 3 points to 28 and remained within 'fear' territory on Friday according to Alternative.me. This suggests that investors may be becoming more cautious amid geopolitical tensions and other macroeconomic factors like rising oil prices and bond yields.
The outflow in Bitcoin ETFs could indicate a shift in investor sentiment, possibly due to concerns about market volatility or broader economic conditions. Traders should monitor the next few days for any further movement as ETF inflows can be volatile and subject to short-term fluctuations based on various factors including macroeconomic events and geopolitical tensions.
Going forward, traders will need to keep an eye on how these trends develop in relation to overall market sentiment and broader economic conditions. The performance of Bitcoin and other cryptocurrencies could also be influenced by ongoing developments between the US and Iran as well as global financial markets.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.