U.S. cash-listed ETFs saw the third-largest outflow since launch, with outflows exceeding $400 million.
Every time we see outflows of more than $400 million we see a local bottom in the price, which can be seen on May 1st and November 4th.
In yesterday's trading, the lowest price of Bitcoin was about $86,600 and the highest price was close to $92,000. Bitcoin has retreated nearly 6% since breaking through the historical high of $93,000 on November 13.
This price action is not too worrying because usually, once Bitcoin hits a new all-time high, investors tend to take profits. According to Glassnode data, investors have cashed out $15 billion in the past three days. Bitcoin has surged more than 25% since Donald Trump was elected as the new president of the United States earlier this month.
BlackRock’s IBIT saw an inflow of $126.5 million, continuing its strong inflow trend since November 7. However, Fidelity’s FBTC saw an outflow of $179.2 million, Bitwise BITB saw an outflow of $113.9 million, Ark’s ARKB saw an outflow of $161.7 million, and Grayscale’s two products saw a combined outflow of $74.9 million.
Thursday was the third worst day for Bitcoin-related products since the ETF launched. Interestingly, the other two times the ETF saw outflows of more than $400 million were on November 4 ($541.1 million), just before the U.S. election, and on May 1 ($563.7 million). On November 4, Bitcoin bottomed out at around $67,000 before surging to over $93,000. The May low coincided with a bottom just below $60,000.
We will have to wait and see if ETF flows signal another bottom and if history repeats itself.
On the other hand, the Ethereum (ETH) ETF saw its first outflow in nearly two weeks, with investors withdrawing $3.2 million. (Excerpt from the DEDK Cryptocurrency cd20 Index)
