CDS Crypto News $563 Million FBTC and GBTC Net Outflows Put Bulls on Alert
Crypto News

$563 Million FBTC and GBTC Net Outflows Put Bulls on Alert

FBTC and GBTC net outflows are scaring the bulls.

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$563 Million FBTC and GBTC Net Outflows Put Bulls on Alert

Crypto News – Even as Federal Reserve (Fed) chairman Jerome Powell ruled out a rate hike, investors dropped U.S.-based spot bitcoin ETFs at the fastest rate on Wednesday.

$563 Million FBTC and GBTC Net Outflows Put Bulls on Alert

Data from CoinGlass and Farside Investors shows that the 11 ETFs saw a combined net outflow of $563.7 million, the highest since the funds started trading on January 11. This continued a five-day losing run. From April 24 through the present, investors have removed around $1.2 billion from the ETFs.

With withdrawals of $191.1, FBTC led the outflows on Wednesday. Bulls may find this concerning because, throughout the first quarter, FBTC and IBIT brought in a steady stream of capital, more than offsetting the frequent huge withdrawals from the more expensive GBTC.

Losses Continue Despite Powell’s Dovish Stance

The Fed on Wednesday kept the benchmark interest rate unchanged between 5.25% and 5.5%, as expected. During the press conference, Powell said the economy is too strong to cut rates while pushing back against fears of renewed rate hikes or liquidity tightening stoked by recent disappointing inflation figures. Other funds also bled money even though Powell’s net-dovish approach put a floor under risk assets, including bitcoin. A dovish stance is one where the central bank prefers employment and economic overgrowth over excessive liquidity tightening.

$563 Million FBTC and GBTC Net Outflows Put Bulls on Alert
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lectertodd

Lectertodd is 25 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

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