Bitcoin ETF Outflows Persist Amid Market Uncertainty
The digital currency market has displayed a bearish outlook in recent months, with its total valuation dropping from $4.2 trillion last month to $2.8 trillion this week.
Bitcoin, the largest cryptocurrency by market capitalization, has declined from $120,000 to $80,000 over the same timeframe.
Outflows from spot Bitcoin ETFs have now reached $4.34 billion, a notable increase from $1.22 billion recorded last week.
Mustafa Batuhan Tufaner, an associate professor of economics at Istanbul Beykent University, told a news agency that institutional withdrawals from ETFs reduced market liquidity and pushed down Bitcoin’s spot price, while falling prices spurred additional outflows.
“We can say there are two main reasons for the large ETF outflows in November: short-term profits following the small surge in October and the uncertainty in global macro policies leading to a decline in risk appetite — these reasons accelerated the shift from risky assets to cash,” he explained.
“The upcoming rate decision (by the Fed), inflation, and US employment data will be decisive for the crypto market — ongoing monetary policy expansion and the prominence of dovish rhetoric by Fed officials will support the demand, while net inflows from institutional investors, statements from Fed officials, and changes in leverage positions will be decisive in market direction; in short term, crypto regulations and institutional preference for ETFs will decide the pricing,” he added.
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