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Bitcoin ETFs Experience Significant Outflows Amid Economic Uncertainty

#BitcoinETF #ETF #Bitcoin #Grayscale $BTC

U.S.-listed spot Bitcoin ETFs experienced significant outflows for the second day, with traders mitigating risk before crucial macroeconomic announcements. On Tuesday, eleven ETFs saw $200 million in net outflows, the highest since $580 million on May 1. This sell-off briefly pushed BTC prices to $66,200 before a quick recovery.

Grayscale Leads the Outflows
Grayscale’s GBTC was hit hardest, accounting for $120 million of the outflows. Since January, GBTC has faced $18 billion in cumulative outflows, making it the worst-performing ETF. Other ETFs, including Ark Invest’s ARKB, Bitwise’s BITB, Fidelity’s FBTC, and VanEck’s HODL, also saw significant outflows, with no inflows reported.

Market Reaction to Upcoming Announcements
Analysts link these outflows to traders' risk-averse actions ahead of the Consumer Price Index (CPI) reading and the Federal Open Market Committee (FOMC) meeting, where the Federal Reserve's monetary policy decisions will be announced.

"Markets are in risk-off mode ahead of CPI and FOMC," noted QCP Capital. Despite short-term challenges, they maintain a long-term bullish outlook, citing potential bullish events like the launch of an ETH spot ETF and the political battle for the crypto vote between Biden and Trump.

Upcoming Market Movers
Treasury Secretary Janet Yellen's speech on Friday could also impact cryptocurrencies. This period of volatility highlights the importance of staying informed about macroeconomic factors affecting crypto investments.