Bitcoin
Bitcoin drops close to $64,000 as ETFs bleed $140 million
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The price of Bitcoin plummeted to near $64,000 on Friday, hitting a low of $64,300, according to data from TradingView. The drop comes amid large withdrawals from US spot Bitcoin ETFs totaling $139.88 million on Thursday.
Grayscale Bitcoin Trust (GBTC) recorded $53 million in its daily net outflows, while Fidelity Wise Origin Bitcoin Fund (FBTC) recorded $51 million in outflows, according to SoSoValue’s data.
The Bitwise Bitcoin ETF saw outflows of $32 million, while the VanEck Bitcoin Trust and Invesco Galaxy Bitcoin ETF saw outflows of $4 million and $2 million, respectively.
In contrast, BlackRock’s iShares Bitcoin Trust received $1.5 million in inflows. There were no flows into the ARK 21Shares Bitcoin ETF (ARKB), Franklin Templeton Bitcoin ETF (EZBC), and WisdomTree Physical Bitcoin (BTCW) during the day’s trading session.
The latest record marked the fifth consecutive day of losses for US spot Bitcoin ETFs, although this is not the most prolonged. The longest sequence of exits occurred between April 24 and May 2, resulting in a reduction of 1.2 billion dollars.
Historically, Bitcoin price actions have reflected ETF flows. However, in recent weeks, several factors have taken turns.
According to Arkham Intelligence, the recent selling pressure may come from the German government, which has transferred approximately $195 million worth of Bitcoin to exchanges since June 19. Data shows that the government still holds around $3 billion worth of BTC.
UPDATE: German government still sells BTC >$195 million so far.
In the last 2 hours, the German government sent $65 million worth of BTC to 2 likely exchange deposits, including Coinbase.
The German government moved $600 million worth of BTC yesterday, sending $130 million worth of BTC to 4 likely exchange deposits, including… pic.twitter.com/in2urlDBE0
– Arkham (@ArkhamIntel) June 20, 2024
Another factor to consider is hedge funds’ exposure to BTC. According to André Dragosch, Head of Research at ETC Group, hedge funds have reduced their market exposure to just 0.37 over the last 20 trading sessions, a low not seen since October 2020.
BOOM: Crypto Hedge Funds Have Really Throw in the Towel #Bitcoin lately.
They reduced their $BTC market exposure to just 0.37 in the last 20 trading days. 👀
The lowest since October 2020. pic.twitter.com/WZCRK9QlMG
—André Dragosch | Bitcoin and Macro ⚡ (@Andre_Dragosch) June 19, 2024
Macroeconomic factors, including the Federal Reserve’s (Fed) stance on interest rates, could also affect the market, with cuts likely by the end of this year. The Fed said it needed more data to be sure inflation is on track to reach its 2% target.
Bitcoin’s bearish momentum could be worsened by these factors. At the time of writing, Bitcoin is trading around $64,500, down nearly 8% in a month.
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