US Spot Bitcoin ETFs Experience Outflows After 19 Days of Cash Inflows: Market Analysis and Price Impact

US Spot Bitcoin ETFs See Outflows after 19 Consecutive Days of Cash Inflows

In the midst of anticipation for high-impact news regarding US inflation and interest rates, the cryptocurrency market experienced a shift as Bitcoin (BTC) and altcoin traders sought refuge in stablecoins. According to the latest market data, United States-based spot Bitcoin exchange-traded funds (ETFs) saw a net outflow of approximately $65 million on Monday, breaking a 19-day winning streak.

The outflows were primarily driven by significant withdrawals from popular funds such as Grayscale Investments’ Grayscale Bitcoin Trust (GBTC) and the Fidelity Wise Origin Bitcoin Fund. GBTC alone recorded a net outflow of around $40 million, followed by Invesco Galaxy Bitcoin ETF with approximately $20 million leaving the fund. The Valkyrie Bitcoin Fund also experienced a net cash outflow of about $16 million.

On the other hand, the iShares Bitcoin Trust had a modest inflow of $6 million, a sharp decline from the previous day’s $168 million inflow. The total cash under custody in US-based spot BTC ETFs currently stands at around $61.45 billion, with a net traded volume of approximately $1.11 billion.

Meanwhile, Hong Kong-based spot Bitcoin ETFs reported zero net cash flow on Monday, holding coins worth about $290 million. In total, 34 Spot Bitcoin ETFs hold 1,031,973 BTC, as highlighted by Michael Saylor on Twitter.

The market picture reflected the impact of the outflows on Bitcoin’s price action, as the cryptocurrency struggled to rally beyond $72,000 in recent months. The shift in cash rotation towards altcoins, particularly meme coins, has further dampened bullish sentiments for Bitcoin. As a result, the price of Bitcoin slipped below $68,000 in the past 24 hours, trading at around $67,800 during the London session.

The overall cryptocurrency market cap also experienced a 3 percent decline, reaching approximately $2.6 trillion at the time of reporting. This selloff was largely influenced by uncertainty surrounding the upcoming Federal Reserve’s FOMC statement and interest rate data, as well as the release of key inflation data on the Consumer Price Index by the United States Bureau of Labor Statistics.

Looking ahead, the US Federal Reserve is expected to maintain its benchmark interest rate around 5.50 percent, although surprises could arise following recent interest rate declines by the European Central Bank and Bank of Canada. Despite the current market fluctuations, Bitcoin’s macro outlook remains bullish, with a midterm target set above $83,000, aligning with the weekly 1.618 Fibonacci Extension.

Overall, the recent outflows in US Spot Bitcoin ETFs signal a shifting landscape in the cryptocurrency market, influenced by both macroeconomic factors and investor sentiment. As traders brace for further developments, the market remains poised for potential volatility in the coming days.