Bitcoin Price Slumps as ETF Outflows Continue: Will a Drop to $50K Follow?
As Bitcoin ETFs had a seven-day run of outflows, the cryptocurrency fell to lows of just over $55,000 on Friday morning. Experts warned of a possible further collapse to $50,000. According to CoinGecko statistics, the price of Bitcoin dropped to lows of $55,761 before rising to trade at its current price of $56,125, down 1% for the day. This indicates broader market trepidation and investors’ declining risk appetite.
Market analysts suggested that Bitcoin might be ready for a more significant fall shortly due to several variables, including persistent ETF withdrawals, wider economic worries, and technical signs. The Crypto Fear and Greed Index dropped to 22, suggesting extreme fear among investors, despite the fact that some see the current volatility as a possible opportunity.
Fidelity, Bitwise, and Grayscale ETFs Lead Massive $211M Bitcoin Outflows
The fall in Bitcoin coincides with a large withdrawal from cryptocurrency ETFs. According to statistics from SoSo Value, there were $211 million in total net outflows from Bitcoin spot ETFs on September 5, which was the longest outflow run since June. This was the sixth day in a row of outflows.
The largest loser of the day was Fidelity’s FBTC ETF, which had outflows of $149.5 million on September 5. Bitwise (BITB) and Grayscale Bitcoin Trust (GBTC) ETFs witnessed withdrawals of $23.2 million and $30 million, respectively. Ethereum ETFs suffered as well; on September 5, there were $152,700 in net outflows overall. It is noteworthy that in a single day, the net outflow from Grayscale’s (ETHE) ETF was $7.3895 million.
Investors appear very nervous, especially ahead of today’s US Non-Farm Payroll report and next week’s inflation update, with the Fed’s rate decision coming on 18th September,
David Morrison, Market Analyst at Trade Nation
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