Concurrent with Bitcoin’s fall below the $96,000 level, U.S. spot Bitcoin exchange-traded funds (ETFs) had notable outflows of $680 million on December 19. The Federal Reserve’s cautious attitude on future interest rate decreases, which significantly affected market mood, coincided with this sell-off.
Outflows Streak 15-Day Inflow
Data from So Value showed that 12 spot Bitcoin ETFs together saw $680 million in outflows, therefore ending a 15-day inflow trend that had before brought in almost $6.7 billion.
With $208.55 million taken out, Fidelity’s FBTC led the withdrawals. Other prominent money impacted included:
Bitcoin Mini Trust (GBTC) Grayscale: $188.6 million
ARK 21Share (ARKB): $108.35 million
GBTC from Grayscale: $87.86 million
Bitwise BITB: 43.61 million USD.
$25.97 million is Invesco Galaxy BTCO.
VanEck HODL: 10.91 million dollars
Valhalla BRRR: $8.19 million
But WisdomTree’s BTCW stood out as an anomaly, drawing just $2.05 million in input. BlackRock’s IBIT and two other Bitcoin ETFs recorded no changes in fund flows for the day concurrently.
Trading Volume Continues to be Strong.
With overall trading volume of $6.31 billion—an increase from the previous day’s $5.86 billion—trading activity across Bitcoin ETFs stayed robust despite outflows.
Bitcoin Dips Below $96K in View Based on Fed’s Restrained Approach
At reporting, Bitcoin’s price dropped 4.4% to $96,751. With its overall worth falling to $3.51 trillion, the larger cryptocurrency market also dropped by 4.5%.
The sell-off was mostly ascribed to the Federal Reserve’s most recent interest rate ruling. Although the Fed cut rates by 0.25%, bringing the annual total cuts to 1%, officials indicated a wary attitude going forward. Just two more rate decreases are forecast for 2025; inflation should reach the 2% goal by 2026 or 2027.
As markets get ready for further macroeconomic uncertainty, this hawkish attitude clouds the crypto market and erases gains, therefore sapping investor hope.
