Key Points
- Bitcoin’s exchange-traded funds (ETFs) in the US saw a record-breaking single-day net outflow of $671.9 million on December 19.
- This coincided with sharp declines in Bitcoin and Ethereum prices, with over $1 billion liquidated across the crypto market in 24 hours.
Bitcoin’s ETFs in the United States experienced an unprecedented single-day net outflow on December 19, marking the end of a 15-day inflow streak for Bitcoin (BTC) ETFs and an 18-day streak for Ethereum (ETH) ETFs.
Leaders in ETF Sell-Off
Data from Farside Investors shows that Fidelity’s FBTC led the outflows, losing $208.5 million. Other major contributors to the outflows were Grayscale’s GBTC and ARK Invest’s ARKB, with outflows of $208.6 million and $108.4 million, respectively.
These record outflows coincided with a significant drop in Bitcoin and Ethereum prices. Over $1 billion was liquidated across the crypto market during this period.
Bitcoin Dominance Amid Market Sell-Off
Despite the sell-off, Bitcoin’s dominance in the crypto market remained at 57.4%, maintaining its position as the leading asset despite the market turbulence.
The downturn in crypto markets has been linked to broader macroeconomic concerns, including potential changes in U.S. Federal Reserve policy.
The hawkish sentiment from the Federal Reserve also affected traditional markets, with the S&P 500 seeing a decline. This uncertainty may have further pressured the crypto market, as risk sentiment shifted away from growth assets.
Despite the market downturn, there was a surge in “buy the dip” discussions on social media platforms. This suggests that a portion of investors remain optimistic about potential recovery opportunities in the crypto market.
