Recent data reveals significant outflows from spot Bitcoin ETFs, amounting to $200 million, as Bitcoin’s price visited $66,000.
Money in, money out
On Monday, net outflows of $65 million ended a 19-day streak of inflows.
This marked the second consecutive day of outflows for US-based spot Bitcoin ETFs, influenced by anticipation of upcoming macroeconomic reports.
Data from SoSoValue shows that Grayscale led with $120 million in outflows on June 11. and since the introduction of spot ETFs on exchanges in January this year, GBTC has seen a total of $18 billion in outflows.
On Tuesday, BlackRock’s IBIT had no inflows, while Fidelity’s FBTC saw $7.4 million in outflows, and Bitwise’s BITB had $11.7 million in redemptions.
ARK Invest’s ARKB recorded the second-largest outflows at $56.5 million, followed by VanEck’s HODL with $3.8 million.
All eyes on Fed
As spot Bitcoin ETFs experienced these outflows, Bitcoin’s price fell to around $66,000, dropping more than 5% within 24 hours, but despite this, the price has since risen to back around $67,970, marking a 1.7% increase over the past 24 hours as market sentiment improved slightly.
The market is always closely watching for important macroeconomic reports, including the Consumer Price Index and the Federal Reserve’s interest rate decision.
The Federal Open Market Committee meeting, concluding on Wednesday, is particularly significant as investors await statements from Fed Chair Jerome Powell.
There will be rate cuts?
Analysts from QCP Capital commented on the market’s response to Bitcoin’s price drop, and told us historically, Bitcoin’s price has often recovered following FOMC meetings, like now, regaining losses incurred before these key economic events.
“Markets are always in risk-off mode ahead of the CPI and FOMC. This month’s FOMC also release the Dot Plot, which indicates how many rate cuts the Fed expects for the remainder of 2024.”
