The post Bitcoin (BTC) Faces Record ETF Outflows Amidst Growth Concerns and Market Volatility appeared on BitcoinEthereumNews.com.

The cryptocurrency market faced a challenging day on Monday as concerns over economic growth and a sell-off in Nvidia stocks weighed heavily on investor sentiment. According to data from Farside Investors, eleven Bitcoin Exchange Traded Funds (ETFs) experienced a combined outflow of $287.8 million, marking the largest single-day outflow since early May. Fidelity’s FBTC fund led these withdrawals with a staggering $162.3 million, followed closely by Grayscale’s GBTC fund, which saw $50.4 million in outflows. This article delves into recent market movements of Bitcoin ETFs and their implications on investor sentiment amid economic concerns. Market Reactions to Economic Data Affecting Bitcoin ETFs On Monday, the cryptocurrency market experienced a downturn due to persistent worries regarding economic growth, compounded by significant sell-offs in major stocks such as Nvidia (NVDA). With the sentiment soured, Bitcoin ETFs were hit hard, leading to an unprecedented outflow that stirred investor unease. Notably, the total amount withdrawn from these funds surpassed $500 million since the beginning of May, reflecting increased wariness among investors regarding market stability. A Closer Look at Fund Outflows: Implications for Investors The Farside Investors report illustrates the magnitude of the outflows from major Bitcoin ETFs. The FBTC fund saw its largest drawdown at $162.3 million, a striking indicator of declining investor confidence. Other notable losses included Grayscale’s GBTC fund with $50.4 million, and BitB and ARK funds experiencing outflows of $25 million and $33.6 million respectively. These shifts signal a potential rethink among investors as they reassess their exposure to Bitcoin and other cryptocurrencies amid fluctuating market conditions. Impact of U.S. Economic Indicators on Bitcoin Valuation Subsequent data releases from the U.S. revealed that Bitcoin’s price fell by more than 2.7% to $57,500, reversing the gains seen on Monday. This downturn can be linked to disappointing U.S. ISM manufacturing PMI figures, which…

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Filed under: News - @ September 4, 2024 7:20 am