US-listed spot Bitcoin ETFs recorded a $225M net outflow after seven consecutive inflows, as market sentiment weakened amid geopolitical tensions.
After attracting nearly $1 billion over the past seven trading sessions, US-listed spot Bitcoin exchange-traded funds (ETFs) saw their first daily net outflow since July 13, with a total of $225.2 million in net outflows recorded on Thursday.
The significant shift came as Bitcoin briefly dipped below the crucial $65,000 level following renewed tensions between the US and Iran, which caused US stocks to fall. By the time this article was published, Bitcoin had recovered slightly to trade at $65,403 after hitting a low of $64,600.
Despite Thursday's outflows, spot Bitcoin ETFs still managed to attract approximately $274 million in net inflows for the week leading up to July 21. In contrast, US-listed spot Ether ETFs extended their inflow streak to five consecutive days, with a total of $26.3 million in net inflows recorded on Thursday.
Market sentiment weakened during this period as the Crypto Fear & Greed Index fell by three points to 28 and remained within 'fear' territory according to Alternative.me's metrics. This index measures investor fear versus greed based on various market data, indicating a cautious approach among traders amid volatile conditions.
The outflow from Bitcoin ETFs suggests that investors may be becoming more cautious or shifting their focus towards other assets such as Ether in the current geopolitical climate. However, it is worth noting that these ETFs have been steadily gaining traction since their inception and remain an important indicator of institutional interest in cryptocurrencies.
Traders should watch for further movements in Bitcoin's price and overall market sentiment as geopolitical tensions continue to evolve. Additionally, they may want to monitor the performance of other crypto assets like Ether or altcoins that could benefit from a shift away from Bitcoin ETFs.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.