Spot Bitcoin exchange-traded funds (ETFs) in the United States recorded their highest daily outflows in three weeks on January 8, as Bitcoin briefly dipped below the critical $93,000 mark. The decline spurred widespread market panic, leading to $582.9 million in outflows from these investment products.
Highest Outflows Since December
According to data from SoSoValue, the 12 spot Bitcoin ETFs experienced their largest outflows since December 19, when $680 million was withdrawn in a single day. The outflows on January 8 ended a three-day inflow streak that had brought nearly $2 billion into these funds.
Key contributors to the outflows included:
Fidelity’s FBTC: $258.69 million withdrawn
ARK 21Shares’ ARKB: $148.3 million withdrawn
BlackRock’s IBIT: $124.05 million withdrawn
Valkyrie’s BRRR: $14.1 million withdrawn
Bitwise’s BITB: $11.26 million withdrawn
Smaller outflows were also recorded by Invesco Galaxy’s BTCO, Grayscale’s GBTC, and Franklin Templeton’s EZBC, with withdrawals ranging from $8 million to $9.4 million.
Volume Decline Reflects Investor Caution
Daily trading volume for these ETFs dropped to $3.4 billion on January 8, significantly lower than the $4.62 billion recorded the previous day. This decline indicates growing investor caution amid broader market concerns.
The outflows followed Bitcoin's price falling below $93,000 due to macroeconomic uncertainty. The Federal Reserve's recent meeting minutes signaled persistent inflation concerns, coupled with expectations of a hawkish stance under the incoming Trump administration.
Price Impact and Market Sentiment
Bitcoin's price fell by 1.4% at press time, trading just above $94,000. Analysts warn that breaking below the key $95,000 support level could trigger further declines, with BTC potentially targeting $88,000.
The bearish sentiment extends to the broader crypto market, with Ethereum, Solana, and other altcoins also posting significant losses. The current pullback highlights the volatility inherent in the crypto sector, particularly in response to shifting macroeconomic conditions and investor sentiment.
Outlook
While Bitcoin ETFs have seen significant inflows in recent months, this latest wave of outflows underscores the challenges facing the cryptocurrency market in the face of tightening monetary policies and heightened risk aversion. Analysts suggest that Bitcoin’s next price movements will depend on its ability to maintain support above $93,000 and broader economic developments in the coming weeks.
