The post Bitcoin ETFs Face Record Outflows: Is a Drop to $90K Looming? appeared first on Coinpedia Fintech News
After a strong start to the new year that saw Bitcoin reclaim the $102K level, the original digital asset is struggling to maintain momentum as Bitcoin fell as much as 10 % to hit $93k on 9 Jan. While, Bitcoin holders offloaded their spot Bitcoin ETF in the United States recorded their second-highest daily outflow.
BTC ETF Recorded Outflow
On January 8, spot bitcoin ETF recorded $568 million marking the second-biggest withdrawal since these funds were launched. According to data from SoSoValue, the highest record outflow of $680 million occurred just a few weeks earlier, on December 19.
However, leading the outflow charge Fidelity’s FBTC saw the highest outflow, losing $258 million, followed by Ark Investment with $148.3 million and BlackRock’s IBIT, which shed $124 million.
These withdrawals coincide with renewed fears of inflation in the U.S., which have led to bond market volatility and a decline in risk assets, including Bitcoin.
The bearish trend wasn’t limited to Bitcoin. Ether ETFs also suffered significant outflows, losing $159.3 million on January 8. This marked their largest withdrawal since late July.
ETH ETF Impact Too
Meanwhile, Ether ETFs bled $159.3 million, the largest tally since July 26, when these public funds processed withdrawals worth $162 million. Meanwhile, crypto liquidations totaled $464 million in the past 24 hours, according to CoinGlass data, highlighting the pressure on the broader market.
A Ray Of Hope!!!
Despite these setbacks, the Crypto Fear & Greed Index remains in “Greed” territory, with a score of 69. Some analysts are hopeful that upcoming economic data, like the nonfarm payrolls report, could bring a positive shift.
BTC Price Analysis: $90K Next?
Bitcoin’s price continues to fall, now trading below $93,403 after a 2% drop in the last 24 hours. If the cryptocurrency fails to hold above $92,493, a key Fibonacci retracement level, it might drop further to the important $90,000 mark.
The Relative Strength Index (RSI) currently sits at 43, signaling bearish momentum. For Bitcoin to regain strength, it must overcome these challenges and reclaim the $100,000 level.
