Bitcoin surged past $100K but is now facing a stark reality as Bitcoin ETFs experience a notable bleed of funds following the recent excitement. After Donald Trump’s victory as the 47th President of the United States, Bitcoin (BTC) celebrated an extraordinary bull run, reaching a jaw-dropping all-time high of $108,000.
This impressive surge sparked an influx of enthusiasm among investors, with spot BTC exchange-traded funds (ETFs) drawing significant inflows. However, the tide has turned unexpectedly. Over the past four consecutive days, Bitcoin ETFs have seen outflows that hit a staggering $671.9 million. The onset of this trend began on December 19, and on December 24, BTC ETFs faced considerable withdrawals amounting to $338.4 million, primarily from larger players in the market.
Leading the charge of withdrawals was BlackRock’s IBIT, which recorded an outflow of $188.7 million. This was closely followed by Fidelity’s FBTC with $83.2 million and ARK 21Shares’ ARKB at $75 million. Surprisingly, amidst this broader trend of red ink, Bitwise’s BITB stood out by accumulating inflows totaling $8.5 million.
The shift from inflows to outflows correlates with a significant price drop, bringing Bitcoin down to nearly $94K on December 24, reflecting a concerning decline in institutional interest.
So, what’s behind this retreat? Many experts point to increasing speculation surrounding a possible market slowdown. Historically, U.S. election years have shown patterns that suggest rallies tend to lose steam once a President-elect takes office. In fact, insights from Bloomberg and Macrobond Financial reveal that assets—including Bitcoin—often experience diminishing momentum post-inauguration. This has understandably sparked apprehension among investors regarding Bitcoin’s ability to maintain its upward trajectory in the coming months.
Despite these jitters, Bitcoin’s recent activity showcases a flicker of potential revitalization. Data from CoinMarketCap indicates BTC trading at $98,052.98, marking a 4.18% increase within the last 24 hours. This upward movement could signal a potential recovery for Bitcoin ETFs after several challenging days.
In the meantime, Ethereum (ETH) is stealing some of the limelight. Spot Ethereum ETFs reported impressive inflows of $53.6 million, reflecting a growing preference for Ethereum amid current market dynamics. Ethereum’s price remains stable around $3,400, while Bitcoin inches closer to that crucial $100,000 mark, rallying toward the $99,000 resistance level.
While markets remain unpredictable, these signals of recovery provide hope for a strong year-end finish. The situation underscores the emotional rollercoaster typical for investors in the world of cryptocurrencies. As the landscape shifts, the focus on strategic decision-making remains paramount for those involved in the crypto space.
