Bitcoin’s price drop below the critical $100,000 level on January 8 sparked a wave of investor withdrawals, with US-listed spot Bitcoin ETFs recording a massive $569.1 million in outflows. This marked the second-largest daily outflow in the history of Bitcoin ETFs, narrowly trailing the $671.9 million outflow recorded on December 19, according to Farside data.
The Fidelity Wise Origin Bitcoin Fund bore the brunt of the day’s withdrawals, accounting for 45% of the net outflow. With $258.7 million pulled from the fund, this was its highest single-day withdrawal to date.
Market Sentiment
Bitcoin’s price temporarily fell to $92,500, driven by concerns over potential interest rate hikes from the US Federal Reserve in response to strong economic data.
Ryan Lee, chief analyst at Bitget Research, pointed to tightening monetary policies as a primary factor behind Bitcoin’s recent dip. Despite these challenges, the overall market sentiment has held steady. The Crypto Fear & Greed Index, which gauges sentiment for Bitcoin and other cryptocurrencies, dropped to a “Greed” score of 69—down from the “Extreme Greed” score of 78 seen a month earlier.
Bitcoin was trading at $93,200 at the time of publication, according to CoinMarketCap.
An Uncertain Start to 2025
The new year has presented a mixed picture for Bitcoin traders. In a January 9 post on X, prominent trader Daan Crypto Trades described the asset’s performance as a “pretty undecisive start of the year.”
While Bitcoin reached a local high of $102,500 earlier this month, it hit a new monthly low on January 8, reflecting the choppy nature of early-year trading. Daan added that seasonal volatility often obscures broader trends, making it premature to draw definitive conclusions.
Despite the setbacks, market participants remain cautiously optimistic about Bitcoin’s long-term trajectory. While ETF outflows and price fluctuations dominate headlines, analysts suggest that the cryptocurrency’s resilience in sentiment underscores its potential for recovery in the months ahead.
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