The BTC price experienced severe selling pressure due to substantial outflows from spot Bitcoin ETFs as the Hawkish Fed stance impacts future rate cuts.
The most recent report from CoinShares indicates that the digital asset investment products experienced outflows tallying $600 million over the past week. This resulted from the FOMC meeting, which was more hawkish than anticipated.
Bitcoin ETFs outflow experienced significant increase last week
Most outflows last week were primarily due to outflows from the US spot Bitcoin ETFs. Grayscale’s GBTC ETF experienced the most significant outflows, with $274.3 million departing the higher-fee fund. Subsequently, Ark Invest’s ARKB and Fidelity’s FBTC experienced net outflows of $149.7 million and $146.3 million, respectively.
Conversely, BlackRock’s IBIT was the sole Bitcoin ETF that experienced net inflows last week, with inflows of $41.6 million. Consequently, since their inception, the aggregate net inflows into spot Bitcoin ETFs have decreased to $15.1 billion.
Before the previous week, the spot Bitcoin ETFs experienced 19 consecutive days of substantial inflows, totaling over $4 billion. Nevertheless, this period of inflows concluded on Monday, when the ETFs experienced a net outflow of $64.9 million. The spot Bitcoin ETFs experienced outflows of $200 million per day during the three days preceding and following the FOMC meeting.
BTC led Total outflows from global investment products
Reflecting the prevailing adverse sentiment, outflows totaling $621 million were exclusively directed toward Bitcoin. Moreover, $1.8 million was put into bearish Bitcoin positions. This led to a 7% decline in the price of Bitcoin over the past week.
The total assets under management (AuM) decreased from over US$100 billion to US$94 billion over the week, as reported by James Butterfill in his CoinShares report, due to these outflows and the recent price decline.
In addition, the trading volumes for the most recent week decreased to US$11 billion, which is lower than the average weekly trading volume of $22 billion this year. This figure, however, remains significantly higher than the $2 billion per week recorded in the previous year.
The preponderance of outflows totaling $565 million in the United States was observed relative to regional trends. Canada, Switzerland, and Sweden also experienced outflows of $15 million, $24 million, and $15 million, respectively, indicating that negative sentiment was not restricted to the United States. Conversely, Germany experienced an exception to the general trend of outflows, with $17 million in inflows.
