Bitcoin's price fell to $64,300 on Friday, according to TradingView data. This comes amid large investor withdrawals from spot Bitcoin ETFs in the US on Thursday.
According to SoSoValue, daily outflows from Grayscale Bitcoin Trust amounted to $53 million, and from Fidelity Wise Origin - $51 million. The Bitwise Bitcoin ETF lost $32 million, the VanEck Bitcoin Trust lost $4 million, and the Invesco Galaxy Bitcoin ETF lost $2 million.
At the same time, BlackRock's iShares Bitcoin fund saw inflows of $1.5 million. ARK 21Shares Bitcoin ETF, Franklin Templeton Bitcoin ETF and WisdomTree Physical Bitcoin showed no changes during the afternoon trading session.
This record marked the fifth consecutive day of losses for spot Bitcoin ETFs in the United States. However, this is not the longest period of outflow of funds. The longest outflow streak occurred from April 24 to May 2, when $1.2 billion was lost.
Historically, Bitcoin price movements have reflected ETF flows, but that has changed over the past few weeks. According to Arkham Intelligence, the recent selling pressure may be related to the German government, which has transferred approximately $195 million in Bitcoin to exchanges since June 19.
The German government still owns about $3 billion worth of Bitcoin, and in the last 2 hours it has funneled $65 million into 2 likely exchange deposits, including Coinbase.
Another factor to consider is hedge funds' exposure to BTC. Hedge funds have reduced their market share to 0.37 over the last 20 trading days, the lowest since October 2020, according to Andre Dragos, head of research at ETC Group.
Macroeconomic factors, including the Federal Reserve's stance on interest rates, may also affect the market. A decline is unlikely before the end of this year, and the Fed has said it needs more data to be confident that inflation is on track to meet its 2% target.
These factors could exacerbate Bitcoin's bearish momentum. At the time of writing, Bitcoin is trading at around $64,600, down almost 8% for the month.
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