Bitcoin ETF Outflows Weigh on BTC PriceThe US Bitcoin spot exchange-traded fund (ETF) has witnessed its longest streak of daily net outflows since the beginning of the year, indicating a broader retreat from risk assets in the US. According to Bloomberg data, investors withdrew close to $1
Bitcoin ETF Outflows Weigh on BTC Price
The US Bitcoin spot exchange-traded fund (ETF) has witnessed its longest streak of daily net outflows since the beginning of the year, indicating a broader retreat from risk assets in the US. According to Bloomberg data, investors withdrew close to $1.2 billion from 12 Bitcoin ETFs in the eight trading days ending September 6th. This coincides with a slump in US stocks and commodities markets due to economic growth concerns. Reports suggest that the correlation between Bitcoin's price trajectory and the US stock market is intensifying.
Bitcoin's price has been under pressure throughout September. Bloomberg data reveals that Bitcoin's price has shed approximately 7% this month before experiencing a modest rebound, increasing about 1% to $54,870 per coin as of 1 pm Singapore time on September 9th. Sean McNulty, trading director at liquidity provider "Cobbler's Knife Market," attributes this small rebound to potential short-covering by influential market players.
Caroline Molron, co-founder of "Track Market," a provider of liquidity for digital asset derivatives trading, anticipates Bitcoin's price to trade within the range of $53,000 to $57,000 ahead of the US consumer price index data release on the 11th. Molron believes that the latest inflation data will guide market expectations surrounding the pace of interest rate cuts by the US Federal Reserve.
From the last quarter of 2022 to the first quarter of 2023, Bitcoin experienced a significant surge in price. This was partly attributed to unmet investment or speculative demand in traditional markets and, importantly, the historic easing of Bitcoin regulatory constraints by US regulators. This influx led to a substantial inflow of US dollar capital into the Bitcoin ETF market. However, Bitcoin's price has exhibited greater volatility since the second quarter of this year. The approval of Bitcoin spot ETFs by the US Securities and Exchange Commission in January enabled several companies to launch their Bitcoin spot ETF products. This allowed institutional and retail investors to invest in Bitcoin via traditional stock accounts without directly owning the cryptocurrency.
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