Spot Bitcoin ETFs Record Highest Outflow Day in Three Weeks as Market Panic Sets In

On January 8, spot Bitcoin exchange-traded funds (ETFs) in the United States experienced their highest outflow day in three weeks, with a total of $582.9 million withdrawn from the funds. This significant outflow was triggered by Bitcoin briefly dipping below $93,000, causing market-wide panic among investors.

Outflows Across Various Funds

The 12 spot Bitcoin ETFs recorded outflows on Tuesday, marking the highest since December 19, when $680 million was withdrawn. Fidelity’s FBTC led the outflows, with $258.69 million withdrawn from the fund. ARK 21Shares’ ARKB followed closely, with $148.3 million in outflows.

Other notable outflows were recorded by:

  • BlackRock’s IBIT: $124.05 million
  • Valkyrie’s BRRR: $14.1 million
  • Bitwise’s BITB: $11.26 million
  • Invesco Galaxy’s BTCO: $9.38 million
  • Grayscale’s GBTC: $8.94 million
  • Franklin Templeton’s EZBC: $8.17 million

Impact on Daily Trading Volume

The daily trading volume for these investment vehicles stood at $3.4 billion on January 8, significantly lower than the $4.62 billion recorded the previous trading day.

Market Expectations and Bitcoin’s Price

The record outflows on Tuesday came as Bitcoin’s price fell below $93,000 amid macroeconomic concerns, signaling expectations of a more hawkish stance from the Federal Reserve. This bearish news for cryptocurrencies, combined with the significant outflows, pushed Bitcoin down by 1.4% at press time, trading slightly above $94,000.

Analysts expect a drop below the key $95,000 support level to potentially trigger a further slump for the leading crypto asset, with Bitcoin targeting $88,000.

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