As the broader cryptocurrency market continues to grapple with heightened volatility, Bitcoin ETF products also seem to be facing significant turbulence. Notably, recent market statistics indicate that U.S. spot BTC ETFs closed this week with an outflow of $287 million, raising concerns in the market as BTC prices dipped to $94,000. In turn, with declining institutional interest and recent volatility, cryptocurrency enthusiasts are now closely monitoring the future price movements of the flagship token.
The outflow of funds from Bitcoin ETFs has reached $287 million, raising concerns in the market.
According to the latest data provided by Farside Investors, as of December 27, the outflow of funds from Bitcoin ETFs amounted to $287.9 million. Such a large outflow highlights the decline in institutional interest and has triggered serious uncertainty among investors amid the current market turbulence.
Data shows that Fidelity's FBTC experienced an outflow of $208.2 million yesterday. Additionally, Ark Invest's ARKB saw an outflow of $112.6 million. Furthermore, Bitwise's BITB had an outflow of $36 million, while Invesco's BTCO saw an outflow of $14.2 million.
Moreover, it is worth mentioning that BlackRock's IBIT had an inflow of $79.4 million. Nonetheless, the data overall suggests a significant decline in institutional interest, raising concerns about the future trajectory of the flagship cryptocurrency.
In contrast, CoinGape also reported that BTC ETFs recently saw an inflow of $450 million, presenting a stark contrast to the asset's future trajectory. Strong inflows suggest that Bitcoin could recover in the future, while the current outflows are a direct result of market volatility.
What’s next for BTC?
As of the writing of this article, the BTC price has dropped nearly 0.5% during the session, currently at $94,214. Its 24-hour low and high prices are $93,310.74 and $97,294.85, respectively. Notably, the weekly chart shows a 5% drop in value, reflecting the turbulence in the cryptocurrency market, which also aligns with the outflow of funds from Bitcoin ETFs.
This turbulence aligns with the Federal Reserve's tough stance on interest rate cuts, with no significant macroeconomic events expected before next year. However, CoinGape reports that it is worth mentioning that BTC whales are buying on dips.
Additionally, the entire industry remains optimistic about the long-term prospects of the flagship cryptocurrency. Robert Kiyosaki, author of 'Rich Dad Poor Dad,' is a well-known figure in the cryptocurrency industry, and he predicts that BTC will reach $350,000 by 2025. Overall, despite the outflows and recent market volatility, Bitcoin still shows potential for further increases in the future.