Record outflows from Bitcoin ETFs point to significant changes in investor sentiment and behavior amid sharp declines in cryptocurrency prices.$BTC
This extraordinary breakout highlights the levels of price volatility in Bitcoin and Ethereum as investors respond to external economic pressures.
“The recent selling pressure shows how sensitive crypto markets are to macroeconomic signals,” a COINOTAG source explained.
The record $671.9 million outflow from Bitcoin ETFs in the United States coincides with significant price declines as investors respond to economic pressures and market volatility.
The market sell-off is occurring in parallel with the declines in crypto prices. These record highs coincide with sharp declines in Bitcoin and Ethereum prices. Bitcoin lost 9.2% in the last 24 hours to $93,145.17, while Ethereum experienced a deeper 15.6% drop. In the process, more than $1 billion in the crypto market was turned into liquidity from wallets.
According to Sosovalue data, the total net assets of Bitcoin ETFs fell to $109.7 billion on Dec. 19, compared to $121.7 billion two days earlier. This rapid decline erased most of the gains made at the beginning of December.
This sell-off strengthened Bitcoin’s dominance in the crypto market, rising to 57.4% and maintaining its leading position despite recent volatility.
Federal Reserve policy and broader economic concerns have also been linked to the sharp decline in crypto markets. While investors are expecting a 0.25% rate cut from the US Federal Reserve, Fed Chair Jerome Powell’s more cautious statements have drawn attention. Powell indicated that there could be only two rate cuts in 2025, signaling the possibility of a slower monetary policy easing. The Federal Reserve’s hawkish stance has also had an impact on traditional markets, causing the S&P 500 to lose value. Analysts say this uncertainty could put additional pressure on the crypto market, as risk appetite has diminished.
As market uncertainty continues, expectations of “buying the dip” have surged on social media. Data from Santiment showed that “buying the dip” phrases have peaked in the past eight months. The sentiment last rose in April, when Bitcoin fell from $70,000 to $67,000, and has since continued to fall.
While some investors remain cautious, the growing discussions suggest that others are optimistic about a potential recovery opportunity in the crypto market.
