The have seen their demand drop since the start of this month, and this was again evident in the considerable outflows recorded on April 26. This poor run has had far-reaching effects on the broader crypto market as has succumbed to unfavorable market conditions.
Spot Bitcoin ETFS Record $217 Million Of Outflows
Farside Investors revealed in an X (formerly Twitter) that the Spot Bitcoin ETFs recorded $217 million of net outflows on April 25, one of their largest this month. accounted for most of these outflows, with investors moving $139.4 million out of the fund.
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Some other funds also recorded individual outflows. recorded $31.3 million in outflows, while Valkyrie and Bitwise’s ETFs saw $20 million and $6 million in daily outflows, respectively. Notably, recorded a net daily outflow for the first time since these funds were , with $22.6 being moved out of the fund on Thursday.
Meanwhile, BlackRock’s dry spell continued with its recording zero inflows for the second consecutive day. Although the fund has yet to record net daily outflows since launching, this undoubtedly represents a setback, considering that it had, before April 24, 71 consecutive days of daily inflows.
These Spot Bitcoin ETFs’ outflows have led to a wave of sell-offs from the fund issuers to fulfill redemptions. As a result, Bitcoin’s price action has been rather unimpressive as of late, with the flagship crypto experiencing significant price declines due to the heightened selling pressure. This development has put the bears firmly in control, with from Coinglass showing that more Bitcoin longs than shorts have been liquidated in the last 24 hours.
Macro Economic Factors Also Affecting Bitcoin’s Price
An initial estimate by the Bureau of Economic Analysis on April 25 showed that the grew at an annual rate of 1.6% in the first quarter, which was way below expectations. This data report further diminishes hopes of rate cuts this year and looks to have played out in investors’ minds as Bitcoin briefly dropped below $63,000 following the report’s release.
Meanwhile, the Personal Consumption Expenditures (PCE) is set to be released on April 26. This PCE report could come in higher than expectations, adding to the growing concerns about the unlikelihood of rate cuts this year.
Interest rates have significant implications on risk assets, including crypto, and if the decides to take a hawkish stance, it could negatively impact the crypto market.
BTC price falls toward $63,000 | Source: