Bitcoin ETFs Outflows Reach $1.2 Billion Amid Economic Concerns
Bitcoin ETFs experienced a significant outflow of funds last week, marking the longest stretch since their introduction in January. Investors pulled out a total of $1.2 billion over eight consecutive days through September 6. This trend was driven by fears of an economic slowdown, leading to a sell-off in risk assets such as stocks and cryptocurrencies.
Economic Data Impact on Bitcoin
The recent economic data suggesting a slowdown in the US economy had a notable impact on Bitcoin and other risk assets. Following the release of the August jobs report, which indicated fewer job additions than anticipated, Bitcoin experienced a decline of over 7.5% last week, trading below $53,000 on Friday.
Market Volatility and Safe Havens
Concerns about future market volatility, including events like yen carry unwinding, have prompted investors to seek safe havens. Bank of America’s strategist, Savita Subramanian, advised focusing on shares resilient to increased volatility, such as utilities and real estate, rather than tech stocks.
Future Outlook for Bitcoin
The crypto market, including Bitcoin, is known for its volatility. With the upcoming presidential election and Donald Trump’s advocacy for the US to become the « crypto capital of the planet, » Bitcoin could experience heightened fluctuations. Despite the recent outflows from Bitcoin ETFs, the cryptocurrency remains up by approximately 28% since the beginning of the year.
Success of Bitcoin ETFs
Following regulatory approval in January, Bitcoin ETFs have contributed to the coin’s rally, reaching new all-time highs. Despite the recent outflows, Bitcoin continues to show resilience, trading at $57,065 on Monday with a 5% increase.
Source : markets.businessinsider.com