What to know:
Yesterday, I observed a notable withdrawal of funds from U.S.-based Bitcoin (BTC) and Ether (ETH) Exchange-Traded Funds (ETFs), likely due to economic uncertainties influencing the outlook for cryptocurrency prices.
Over the past year, eleven Bitcoin ETFs collectively experienced a net withdrawal amounting to approximately $582 million, which is the second-largest such withdrawal since these investment vehicles started trading. This significant outflow slightly fell short of the record withdrawal of about $680 million that occurred on Dec. 19th, as indicated by data from SoSoValue.
In this case, Fidelity’s FBTC experienced the most significant withdrawals, totaling a record $258 million, while BlackRock’s IBIT faced an outflow of $124 million.
ETFs tied to Ether experienced a net outflow of approximately $159.3 million, marking their largest single-day withdrawal since July 26th, when similar funds processed withdrawals valued at about $162 million.
These substantial outpourings occur concurrently with resurfaced concerns about U.S. inflation, leading to increased turbulence in the bond market and a subsequent decline in risky assets. Over the last three days, bitcoin’s value has dropped by approximately 8.5%, signifying another failed attempt for the bulls to maintain a position above the $100,000 threshold.
The minutes published on December 19th from the Federal Reserve’s meeting suggest that their top officials felt the bank was approaching a stage where it would be necessary to gradually decrease its accommodative policy. Moreover, the notes indicated some apprehension about potential inflationary effects stemming from President-elect Donald Trump’s upcoming policies.
Despite some lingering doubts, certain analysts are hopeful, predicting a fresh surge could occur after the recent nonfarm payrolls report on Friday.
On Friday, the eagerly awaited U.S. employment report will be released, offering vital clues about the state of the American economy, according to analyst Valentin Fournier from BRN. He predicts minimal market turbulence leading up to the weekend and advises investors to keep a substantial investment in digital currencies, favoring Bitcoin over Ethereum.
Read More
- SUI PREDICTION. SUI cryptocurrency
- „People who loved Dishonored and Prey are going to feel very at home.” Arkane veteran sparks appetite for new, untitled RPG
- LDO PREDICTION. LDO cryptocurrency
- Destiny 2: A Closer Look at the Proposed In-Game Mailbox System
- Clash Royale Deck Discussion: Strategies and Sentiments from the Community
- Jennifer Love Hewitt Made a Christmas Movie to Help Process Her Grief
- ICP PREDICTION. ICP cryptocurrency
- Naughty Dog’s Intergalactic Was Inspired By Akira And Cowboy Bebop
- Critics Share Concerns Over Suicide Squad’s DLC Choices: Joker, Lawless, and Mrs. Freeze
- EUR IDR PREDICTION
2025-01-09 11:01