Bitcoin’s price has experienced a significant correction recently, dropping about $13,000. This was likely due to concerns raised by Fed Chairman Powell’s remarks during the latest FOMC meeting, which caused US investors to withdraw over $670 million from Bitcoin ETFs within 24 hours. The primary cryptocurrency’s value fell from above $105,000 to $98,000 on Wednesday evening before rising to almost $103,000 on Thursday.
Despite this brief recovery, bears regained control and drove the price down to a multi-day low of under $96,000, resulting in over $1 billion in liquidations. This occurred during US trading hours when data showed that US investors were pulling out of Bitcoin ETFs at an unprecedented rate, with Fidelity’s FBTC and Grayscale’s BTC experiencing the highest outflows totaling $208.5 million and $188.6 million, respectively.
Even BlackRock’s IBIT, which had seen no net outflows until then, did not attract any fresh funding but managed to avoid major withdrawals. Similarly, Ethereum ETFs experienced outflows totaling $60.5 million, although this was only about 10% of the Bitcoin ETF outflows. Despite this, ETH’s price also dropped significantly, falling by over 9% in the last day and struggling to hold above $3,350 after being rejected at $4,000.
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