Bitcoin Investors Exit Spot ETFs at Near-Record Levels as BTC Drops 2.3%
Bitcoin holders sold their shares of the spot Bitcoin ETF as the asset fell to $92,500 and remained below $95,000.
MARKET NEWS
Bitcoin investors withdrew nearly $570 million from US-listed spot Bitcoin exchange-traded funds (ETFs) as the asset fell below the psychological $100,000 level on Jan. 8, leading to a surge in liquidations.
On Jan. 8, spot Bitcoin ETFs BTCR$565,959 saw a net outflow of $569.1 million, the second-largest daily net outflow since launch and just $100 million below the Dec. 19 outflows of $671.9 million, according to data from Farside.
The Fidelity Wise Origin Bitcoin Fund accounted for about 45% of the day's net outflow, with $258.7 million, the largest single-day outflow.
Markets still in “greed” despite large volume of liquidations
Meanwhile, in the past 24 hours, around $521 million was liquidated in the cryptocurrency market, according to data from CoinGlass.
A total of $521.02 million was liquidated in the cryptocurrency market. Source: CoinGlass
This came as Bitcoin's price briefly dropped to $92,500, primarily due to growing concerns about the U.S. Federal Reserve's tighter monetary policy for 2025, according to Ryan Lee, chief analyst at Bitget Research.
“Bitcoin’s decline is mainly due to strong economic data in the US pointing to possible interest rate hikes,” Lee said.
At the time of publication, Bitcoin was trading at $94,401, according to data from CoinMarketCap.
Still, overall market sentiment has not plummeted significantly, according to the Crypto Fear & Greed Index.
The index, which measures market sentiment towards Bitcoin and other cryptocurrencies, currently shows a “Greed” score of 69, nine points lower than the “Extreme Greed” score of 78 recorded 30 days ago.
Bitcoin had an “indecisive start” in 2025
Some traders say it is still too early to draw conclusions about Bitcoin's price volatility.
In a Jan. 9 X post, Daan Crypto Trades said, “This still doesn’t mean much, especially considering December broke the trend and the beginning of the year is usually very choppy.”
Daan said that while Bitcoin hit a “local top” earlier this month, retesting $102,500, it set a new monthly low on Jan. 8 after pulling back to $92,500.
“Pretty indecisive start to the year so far,” he said.
