Crypto Market Watch: Bitcoin ETFs Face $305M Outflow as Investors Panic
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Digital asset investment products, including BlackRock’s iShares Bitcoin Trust (IBIT) and ARK 21Shares Bitcoin ETF (ARKB), saw a net cash outflow of $305 million last week. Rising concerns about further crypto declines in September have led investors to take profits and protect their capital.
Recent stronger-than-expected economic data in the United States has made a 50 basis points interest rate cut less likely this month. Fed Chair Jerome Powell, speaking at the Jackson Hole meeting, stressed that the commission will closely monitor live data ahead of any upcoming economic changes, particularly after the end of the five-year period.
Here’s everything you need to know.
BlackRock’s IBIT Faces Investor WithdrawalsBlackRock’s IBIT has recently faced low investor demand. On August 29, IBIT reported a net cash outflow of about $13.5 million, following an earlier outflow of $36.9 million on May 1, 2024. Despite these challenges, IBIT has grown significantly since its launch, reaching a net cumulative cash inflow of approximately $20.92 billion.
Impressively, IBIT has seen positive cash inflows every week since its inception, even as other spot Bitcoin ETFs have struggled.
September Weighs HeavyWith fears of a potential crypto correction in September mirroring historical trends, on-chain data shows over 40,000 BTCs were withdrawn from exchanges in recent days.
Bitcoin's price action now echoes the calm before the storm, marking the end of a "Blue Year"—a crucial, quiet period setting up for the explosive "Red Year."
Historically, this phase has preceded all-time highs, as seen in 2012, 2016, and 2020, hinting at the next big surge on… pic.twitter.com/zonpawtK7g
Hopes for a market recovery in the fourth quarter and early next year have encouraged long-term investors, such as MicroStrategy and El Salvador, to continue accumulating Bitcoin.
What Technical Analysis Is Telling UsFrom a technical standpoint, Bitcoin’s price has been forming a potential bullish flag over the past few months, which often precedes a strong uptrend. This pattern suggests that a robust recovery may be on the horizon, offering some optimism to investors despite the current market uncertainty.
Also Read: Why $58,400 is Crucial for Bitcoin and How It Could Pave the Way to $100,000