As a researcher with extensive experience in the cryptocurrency market, I believe that the recent net outflows from Bitcoin (BTC) exchange-traded funds (ETFs) in the U.S. are a cause for concern. The consecutive days of net outflows ahead of the Federal Reserve’s FOMC meeting and key U.S. inflation data suggest that investors are trying to minimize their risks.
In the past two days, US Bitcoin ETFs experiencing a notable trend as they saw a succession of net withdrawals, preceding the highly anticipated Federal Open Market Committee (FOMC) meeting and the release of crucial U.S. inflation figures scheduled for Wednesday.
Based on information from Farside Investors, there were approximately $200.4 million worth of withdrawals from Bitcoin Exchange-Traded Funds (ETFs) in the United States on June 11. The majority of these outflows can be attributed to Grayscale Bitcoin Trust (GTBC) and ARK 21Shares Bitcoin ETF (ARKB), with $121 million and $56.5 million withdrawn from each respectively.
According to Farside Investors’ latest figures, the net outflows from the GBTC spot Bitcoin ETF have exceeded 18 billion dollars after recent withdrawals.
Additionally, the Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC), and VanEck Bitcoin Trust (HODL) experienced withdrawals totaling $15.9 million collectively. Specifically, BITB had $11.7 million in outflows, FBTC recorded $7.4 million, and HODL reported $3.8 million in net redemptions.
Other spot Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT), remain neutral.
On June 10, Bitcoin ETFs experienced their initial day of collective redemptions, marking a reversal from the previous four-week period during which they recorded consistent inflows totaling $64.9 million.
As a cryptocurrency analyst, I’ve observed that Bitcoin dipped below $66,000 recently, prompting investors to take defensive measures against potential risks. However, I recall a similar pattern prior to the release of the U.S. Consumer Price Index (CPI) data. Based on historical trends, we might expect volatility in the market around this data point.
Keep in mind that the U.S. inflation figures are due out today, at 12:30 UTC. Historically, a decrease in American inflation has brought positive signs for cryptocurrencies.
Based on Santiment’s analysis, it is projected that inflation in the country will rise by approximately 3.4 percent from May 2023 to May 2024.
The Consumer Price Index (CPI) report for May 2024 is set to be unveiled tomorrow, June 12th, at 12:30pm UTC, which equates to 11 hours from now. According to current predictions, there could be a year-over-year (YoY) growth of 3.4% or a month-over-month (MoM) increase of 0.3%. If the actual figure turns out to be lower than anticipated, it might suggest that inflation is decelerating, potentially increasing the probability of…
— Santiment (@santimentfeed) June 12, 2024
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2024-06-12 10:44