Spot Bitcoin ETF Experiences Significant Outflow: Largest Capital Outflow in Months, 6,700 BTC Withdrawn

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Against the backdrop of broader adjustments in the market's expectations for a Federal Reserve interest rate cut in 2025, investors withdrew a record $680 million from Bitcoin ETFs on Thursday, the highest single-day outflow since such investment funds were approved in January this year.

Grayscale and Bitwise Bitcoin ETFs Drop 8%

As Bitcoin ETFs face capital outflows, the price of Bitcoin has also dropped, closing down another 5% this week, trading at about $97,400. This sell-off coincides with a general decline in risk assets, which was triggered by the latest economic forecast released by the Federal Reserve earlier this week.

The U.S. central bank currently expects to cut interest rates only twice in the next year, with each cut being 25 basis points, a significant reduction from the four cuts anticipated at the September meeting.

Since the Federal Reserve released new guidance, well-known Bitcoin ETFs, including Grayscale's Bitcoin Trust and Bitwise's Bitcoin ETF, have fallen by about 8%, while Bitcoin itself has also dropped by about 9% during the same period.

Notably, Thursday's outflow broke the record of 15 consecutive days of inflows for 12 U.S. Bitcoin ETFs, during which the net inflow amount was approximately $5.3 billion.

Earlier this week, the price of Bitcoin reached a historical high of $108,000, but fell below the $100,000 mark on Thursday. Before recently recovering to around $100,000, Bitcoin had previously dropped to $92,000.

While the bearish sentiment in the market can be attributed to the Federal Reserve's cautious stance, it may also be influenced by seasonal profit-taking by institutional investors in Bitcoin ETFs.

Analysts Warn of Continued Cryptocurrency Sell-Off

Joseph Dahrieh, the executive director of Tickmill, pointed out that the recent selling pressure could further dampen market sentiment.

He commented, "This decline could have a serious impact on cryptocurrency and broader market sentiment, especially when Bitcoin falls below the $100,000 mark, indicating potential short-term volatility and downside risk."

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