The Discover Bitcoin ETFs have seen their demand fall since the beginning of this month, and this was again clearly visible in the significant outflows recorded on April 26. This bad run has had far-reaching consequences for the broader crypto market, as Bitcoin’s price has succumbed to unfavorable market conditions.
Spot Bitcoin ETFS Records $217 Million in Outflows
Farside Investors unveiled in an X (formerly Twitter) after that the Spot Bitcoin ETFs recorded net outflows of $217 million on April 25, one of their largest this month. Grayscale’s Bitcoin Trust (GBTC) were responsible for the majority of these outflows, with investors pulling $139.4 million from the fund.
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Some other funds also saw individual outflows. Ark Invest’s Spot Bitcoin ETF recorded outflows of $31.3 million, while Valkyrie and Bitwise ETFs saw $20 million and $6 million in daily outflows, respectively. Remarkable, Fidelity’s Wise Origin Bitcoin Fund (FBTC) for the first time since these funds recorded net daily outflows approvedwith $22.6 withdrawn from the fund on Thursday.
Meanwhile, BlackRock’s dry spell continued iShares Bitcoin Trust (IBIT) zero inflow for the second day in a row. While the fund has yet to record any net daily outflows since launch, this is undoubtedly a setback given that prior to April 24 included 71 consecutive days of daily inflow.
The outflows from these Spot Bitcoin ETFs have led to a wave of sell-offs by the fund issuers to achieve redemptions. As a result, Bitcoin’s price action has been quite impressive lately, with the flagship crypto experiencing significant price drops due to increased selling pressure. This development has ensured that the bears are firmly in control facts from Coinglass showing that more Bitcoin longs than shorts have been liquidated in the past 24 hours.
Macroeconomic factors that also influence the price of Bitcoin
A first estimate issued by the Bureau of Economic Analysis on April 25 found that the US gross domestic product (GDP) grew at an annual rate of 1.6% in the first quarter, which was well below expectations. This data report further diminishes hopes for rate cuts this year and appears to have been on investors’ minds as well Bitcoin briefly fell below $63,000 after the report’s release.
Meanwhile, personal consumption expenditures (PCE) inflation data expected to be published on April 26. This PCE report could be higher than expected, adding to growing concerns about the unlikelihood of rate cuts this year.
Interest rates have significant implications for risky assets, including cryptocurrencies, and if so Federal Reserve decides to take an aggressive stance, it could have a negative impact on the crypto market.
BTC price falls toward $63,000 | Source: BTCUSD on Tradingview.com
Featured image of Islam and Bitcoin, chart from Tradingview.com
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