Bitcoin ETF faces record outflows: Is it about to fall to $90,000?

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At the beginning of the new year, although Bitcoin performed strongly in the early stage, it has recently faced greater downward pressure. Although it once broke through the $102,000 mark on January 8, the subsequent sharp correction caused the price of Bitcoin to fall to around $93,000, a drop of 10%. This fluctuation reflects the uncertainty in the market and some challenges facing the current cryptocurrency market.

Outflows from spot Bitcoin ETFs:

Outflows on January 8:

According to data, the spot Bitcoin ETF recorded an outflow of $568 million on January 8, the second largest outflow since the fund was launched. The largest outflow occurred on December 19, when the outflow amount was $680 million.

Among these outflows, Fidelity's FBTC had the largest outflow, losing $258 million, followed by Ark Investment and BlackRock's IBIT, which lost $148 million and $124 million, respectively.

Reasons behind it:

These outflows coincided with renewed concerns about inflation in the United States, leading to volatility in the bond market, which in turn affected the performance of risky assets including Bitcoin.

This situation not only affected Bitcoin, but also Ethereum, whose ETF also recorded an outflow of $159.3 million on the same day, setting the largest single-day outflow since the end of July.

Pressure on the cryptocurrency market:

According to CoinGlass data, the total liquidation of the entire crypto market reached $464 million in the past 24 hours, which further exacerbated the market's selling pressure, showing the cautious and panic market sentiment.

Market sentiment:

Despite the increasing pressure of capital outflow, the market is still in a "greedy" state according to the Crypto Fear and Greed Index, with a score of 69, showing a certain optimism. Some analysts believe that with the upcoming release of the non-farm payroll report and other economic data, the market is likely to usher in some positive changes, which may help reverse the current downward trend.

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