The post Bitcoin ETF Outflows Rise as Market Volatility and Macroeconomic Uncertainty Loom appeared on BitcoinEthereumNews.com.

Bitcoin ETFs are experiencing significant outflows as the market grapples with falling crypto prices amid heightened macroeconomic uncertainty. On Tuesday, spot Bitcoin exchange-traded funds (ETFs) witnessed over $1.1 billion in outflows, marking a substantial shift in investor sentiment. According to Bloomberg ETF Research Analyst James Seyffart, “The outflow numbers seem huge when you’re talking billions, but it’s only about 2.3% of total assets.” Bitcoin ETFs see record outflows due to price drops; however, inflows remain positive in 2023 despite market volatility. Record Outflows Trigger Market Concerns Amidst Crypto Price Collapse The recent volatility in the cryptocurrency market has led to dramatic outflows from Bitcoin ETFs, which have seen more than $2 billion shed in February alone. This sharp decline follows a tumultuous series of events affecting risk assets broadly, including concerns over inflation and potential trade wars. Investors are taking a cautious approach, leading many to retreat from the volatile crypto market. Impact of the Bybit Hack on Market Sentiment The $1.4 billion hack of the Bybit exchange last Friday further exacerbated pressure on the crypto market. This incident has contributed to a growing anxiety among investors regarding the safety of crypto assets. As Seyffart mentioned, factors such as the hack and general market selloff due to potential macroeconomic downturns are crucial contributors to the recent outflows from ETFs. Broader Market Trends and ETF Performance Despite recent challenges, the overall performance of U.S.-listed crypto ETFs remains notable. They have amassed around $3.1 billion in net inflows this year, indicating that there is still significant interest in cryptocurrencies. Market analysts, including ETF.com Analyst Sumit Roy, highlighted that despite consecutive downtrends faced by tech-focused assets, investor confidence in crypto ETFs is resilient amid the turmoil. Bitcoin’s Price Decline and Its Implications As Bitcoin’s price fell below $84,000—a level not seen since November—the…

---

Filed under: News - @ February 26, 2025 11:26 pm