The iShares Bitcoin ETF (IBIT) under BlackRock recorded an unprecedented outflow of $188.7 million on Tuesday, raising concerns about future impacts. Additionally, the U.S. spot Bitcoin ETF has seen outflows for the fourth consecutive day, with Fidelity's FBTC and Ark Invest's ARKB performing poorly during the holiday period. Over the past four days, outflows from Bitcoin ETFs have exceeded $1.5 billion.
BlackRock Bitcoin ETF experiences largest outflow since its launch
With Bitcoin, Ethereum, and other altcoins rebounding in the past 24 hours, the cryptocurrency market shows signs of recovery. Bitcoin prices rose from $94,000 to $99,000 today, possibly due to traders FOMOing into Santa Claus rallies. BTC is currently holding above $98,000, but sentiment changes may trigger profit-taking.
Favorable factors driving market sentiment shifts may come from the BlackRock Bitcoin ETF. According to data from Farside Investors on December 25, this ETF saw its largest outflow since launch on Tuesday. The iShares Bitcoin ETF (IBIT) had an outflow of $188.7 million, nearly double the previous week's largest outflow of $72.7 million.
The total outflow from U.S. spot Bitcoin ETFs is $338.4 million, marking the fourth consecutive outflow. Fidelity's FBTC saw an outflow of $83.2 million, while Ark 21Shares' ARKB had an outflow of $75 million. Other cryptocurrency exchange-traded funds have seen negligible outflows.
This has raised concerns among traders, causing them trouble as the year-end cryptocurrency expiration date approaches. While analysts and investors remain mostly optimistic, experts, including BitMEX co-founder Arthur Hayes, recently predicted that the cryptocurrency market may crash around Donald Trump's inauguration date, triggering sell-offs.
However, cryptocurrency companies like MicroStrategy, Metaplanet, and Matador Technologies are seizing the opportunity to buy amid falling Bitcoin prices. In fact, MicroStrategy's Michael Saylor announced a special shareholder meeting to vote on their 21/21 Bitcoin plan proposal and to increase their funding.
What will the next trend of Bitcoin prices be?
The largest outflow in history from the BlackRock Bitcoin ETF, along with consecutive outflows from spot Bitcoin ETFs, has investors contemplating their next moves.
Cryptocurrency analyst Skew revealed that considering the quotes and previous LTF peaks, the current passive sell liquidity is around $100,000, which is an important price area. Furthermore, sell liquidity and spot supply are around $105,000. He believes that flow and volatility will be key factors here.
"Dynamically using recipients and limit orders to acquire BTC may be a strategic move by some large market entities that anticipate higher prices by the end of the year and early Q1."
BTC price has risen 4% in the past 24 hours and is currently trading at $98,014. The 24-hour low and high prices were $93,744 and $99,404, respectively. Additionally, trading volume decreased by 24% in the past 24 hours, indicating a decline in trader interest.
Traders must closely monitor market volume and sentiment for clues about trends in the coming days, with the BlackRock Bitcoin ETF being a significant factor. Notably, this Friday, Deribit will have 147 BTC options expiring, with a nominal value of $14.4 billion. The maximum pain price is $84,000, with a put/call ratio of 0.68.
