Bitcoin ETF Withdrawals Surge Amid Price Dip Below $100,000 – $570M in Outflows

Bitcoin ETF Face Record $570M Outflows as BTC Dips Below $100K on January 8

Bitcoin ETF– On January 8, Bitcoin (BTC) experienced a significant drop, falling below the critical $100,000 mark, triggering nearly $570 million in outflows from US-listed Bitcoin exchange-traded funds (ETFs). This marked the second-highest daily net outflow since the launch of these funds, with only the December 19 outflow of $671.9 million surpassing it.

Fidelity Bitcoin Fund Leads the Outflows

A major portion of the outflows came from the Fidelity Wise Origin Bitcoin Fund, which accounted for around 45% of the day’s total, with a net outflow of $258.7 million. This was the largest single-day withdrawal for the fund, highlighting growing investor caution as Bitcoin’s price dipped.

Market Liquidity and Liquidations in Focus

As Bitcoin’s price slid to $92,500, roughly $521 million worth of crypto positions were liquidated across the market, according to CoinGlass data. The dip was mainly attributed to rising concerns over the U.S. Federal Reserve’s tightening monetary policy for 2025, as noted by Ryan Lee, Chief Analyst at Bitget Research. “Bitcoin’s dip stems primarily from strong U.S. economic data pointing toward potential interest rate hikes,” Lee stated.

Despite the significant liquidations, the overall market sentiment, as measured by the Crypto Fear & Greed Index, has not drastically changed. Currently, the index shows a “Greed” score of 69, only nine points lower than the extreme greed reading of 78 recorded a month ago.

Bitcoin’s 2025 Start: Volatility and Uncertainty Ahead

While the market has shown signs of caution, traders remain hesitant to draw conclusions. As Daan Crypto Trades mentioned on January 9 via X (formerly Twitter), “This doesn’t say much yet, especially seeing December broke the trend and the start of the year is generally very choppy.”

With the volatility in early 2025, Bitcoin’s path remains uncertain, and investors should carefully monitor the evolving macroeconomic factors before making any major moves.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.