Investors flee Bitcoin ETFs en masse: largest outflow in 4 months
The Bitcoin price has fallen sharply, but US stock market funds have posted an even more disappointing result. Here's what you need to know.
Yesterday was the worst day for the Bitcoin (BTC) price in a month, but on Wall Street the result has been much more disappointing.
US Bitcoin funds have lost more than $600 million in capital, marking the largest outflow since June. The sentiment has (again) clearly changed.
That while the Bitcoin funds were just starting to find their turn again. More than $1 billion had already been raised this week, but the stock market products were not spared during the broader sell-off in the financial markets.
Because the funds actually own Bitcoins for all shareholders, the Bitcoin price is directly affected by a negative result. At the same time, a falling Bitcoin price is weighing on sentiment, making more people want to get out.
BlackRock and Fidelity, the two largest asset managers in the world, have had a particularly tough day. BlackRock had to release $254.1 million and Fidelity $217.5 million. These are also the largest Bitcoin funds in the market.
The Bitcoin price lost 3.16 percent yesterday, which is the largest loss since September 15.
Recently, Bitcoin has been showing volatile results on Wall Street. At the same time, the Bitcoin price has long been trapped in a range between roughly 80,000 and 87,000 dollars.
With Tuesday's breakthrough past $84,000, Bitcoin seemed to be on its way back to the top. But growing concerns about AI spending on the stock market and fears of a new escalation in the Iran war have hurt the currency a lot.
The good news is that Bitcoin is still defending the important support level of just above $80,000. This is despite the fact that the oil price has now slammed to the highest level in five months, which increases inflationary pressure.