Bitcoin ETFs see near-record outflows as BTC dips below $100,000
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Bitcoin faced a significant pullback on January 8, with prices dropping below the psychological $100,000 level and spot Bitcoin ETFs experiencing the second-highest daily outflows in history. Investors liquidated $570 million from U.S.-listed Bitcoin ETFs, reflecting growing concerns about the Federal Reserve’s tightening monetary policy and ongoing market volatility.
Key highlights
Record ETF outflows
Spot Bitcoin ETFs saw net outflows of $569.1 million, just shy of the $671.9 million record set on December 19.
The Fidelity Wise Origin Bitcoin Fund accounted for 45% of these outflows, losing $258.7 million, marking its largest single-day outflow since inception.
Bitcoin’s price action
Bitcoin briefly fell to $92,500, before stabilizing at $94,401 at the time of publication.
This decline was primarily driven by stronger-than-expected U.S. economic data, raising concerns of potential interest rate hikes in 2025, according to Ryan Lee, chief analyst at Bitget Research.
Market sentiment remains resilient
Despite the price drop and large-scale liquidations, the Crypto Fear & Greed Index held steady at a Greed score of 69, down from 78 a month ago. This indicates that market sentiment remains optimistic, albeit slightly dampened.
Liquidations surge across crypto markets
In the past 24 hours, approximately $521 million was liquidated across the crypto market, as traders grappled with Bitcoin's volatility and the broader implications of macroeconomic data.
Analysis: an indecisive start to 2025
Price trends
Bitcoin hit a local high of $102,500 earlier this month but retraced sharply to a new monthly low of $92,500 on January 8.
The asset’s performance reflects a choppy start to the year, with traders hesitant to make definitive calls on the next trend.
Expert opinions
Crypto trader Daan Crypto Trades highlighted that Bitcoin's early-year price action remains volatile and inconclusive, noting, "This doesn’t say much yet, especially seeing December broke the trend, and the start of the year is generally very choppy."
What lies ahead?
Federal Reserve policy
Bitcoin’s near-term direction will likely hinge on the Fed’s monetary policy signals, with potential interest rate hikes continuing to loom over market sentiment.
Investor behavior
While ETF outflows indicate growing caution, the relatively strong "Greed" sentiment suggests that optimism in Bitcoin’s long-term prospects persists.
Technical levels
Support: $92,500, the recent low, remains a key level to watch.
Resistance: $100,000 needs to be reclaimed for Bitcoin to regain bullish momentum.
Conclusion
Bitcoin’s start to 2025 has been marked by heightened volatility, significant ETF outflows, and uncertainty over macroeconomic policy. However, the market’s underlying optimism hints at resilience, with many investors maintaining a long-term bullish outlook despite short-term headwinds. Traders should watch closely for shifts in market sentiment and economic data to navigate this turbulent phase effectively.
Key highlights
Record ETF outflows
Spot Bitcoin ETFs saw net outflows of $569.1 million, just shy of the $671.9 million record set on December 19.
The Fidelity Wise Origin Bitcoin Fund accounted for 45% of these outflows, losing $258.7 million, marking its largest single-day outflow since inception.
Bitcoin’s price action
Bitcoin briefly fell to $92,500, before stabilizing at $94,401 at the time of publication.
This decline was primarily driven by stronger-than-expected U.S. economic data, raising concerns of potential interest rate hikes in 2025, according to Ryan Lee, chief analyst at Bitget Research.
Market sentiment remains resilient
Despite the price drop and large-scale liquidations, the Crypto Fear & Greed Index held steady at a Greed score of 69, down from 78 a month ago. This indicates that market sentiment remains optimistic, albeit slightly dampened.
Liquidations surge across crypto markets
In the past 24 hours, approximately $521 million was liquidated across the crypto market, as traders grappled with Bitcoin's volatility and the broader implications of macroeconomic data.
Analysis: an indecisive start to 2025
Price trends
Bitcoin hit a local high of $102,500 earlier this month but retraced sharply to a new monthly low of $92,500 on January 8.
The asset’s performance reflects a choppy start to the year, with traders hesitant to make definitive calls on the next trend.
Expert opinions
Crypto trader Daan Crypto Trades highlighted that Bitcoin's early-year price action remains volatile and inconclusive, noting, "This doesn’t say much yet, especially seeing December broke the trend, and the start of the year is generally very choppy."
What lies ahead?
Federal Reserve policy
Bitcoin’s near-term direction will likely hinge on the Fed’s monetary policy signals, with potential interest rate hikes continuing to loom over market sentiment.
Investor behavior
While ETF outflows indicate growing caution, the relatively strong "Greed" sentiment suggests that optimism in Bitcoin’s long-term prospects persists.
Technical levels
Support: $92,500, the recent low, remains a key level to watch.
Resistance: $100,000 needs to be reclaimed for Bitcoin to regain bullish momentum.
Conclusion
Bitcoin’s start to 2025 has been marked by heightened volatility, significant ETF outflows, and uncertainty over macroeconomic policy. However, the market’s underlying optimism hints at resilience, with many investors maintaining a long-term bullish outlook despite short-term headwinds. Traders should watch closely for shifts in market sentiment and economic data to navigate this turbulent phase effectively.