- Bitcoin (BTC) breaks its 19-day consecutive growth streak in the U.S. with a significant 65 million dollar downturn.
- Spot Bitcoin ETFs in the U.S. experienced a record-breaking growth for 19 days in a row, ending with the start of the week.
- Bitcoin’s price took a hit last week following the release of U.S. Non-Farm Payrolls data, causing confusion among investors, according to analysts at QCP Capital.
U.S. Spot Bitcoin ETFs See Staggering Net Outflow Amid Market Adjustment
End of the 19-Day Growth Streak for U.S. Spot Bitcoin ETFs
In an unexpected turn, U.S. Spot Bitcoin ETFs witnessed net outflows of approximately $64.93 million on the first day of the week. During the unprecedented 19-day growth streak, these ETFs accumulated investments exceeding $4 billion. Since their inception in January, total net investments into these ETFs have surpassed $15.62 billion.
Impact on Key Players: Grayscale, Invesco, and Others
Among the various Bitcoin ETFs, Grayscale Bitcoin Trust (GBTC) experienced the most significant impact, with withdrawals amounting to $40 million. Data from SosoValue revealed that Invesco and Galaxy Digital’s BTCO fund saw an exodus of $20 million. Additionally, Valkyrie’s ETF faced a $16 million reduction, marking a notable contraction in the market.
Influence of Economic Indicators on Bitcoin Market
The decline in Bitcoin investments coincided with the release of U.S. Non-Farm Payrolls data last week. Analysts at QCP Capital noted considerable investor confusion due to these economic indicators, which consequently led to a pullback in the Bitcoin market. This development emphasizes the sensitivity of cryptocurrency markets to traditional economic metrics.
Fund Flow Dynamics: Winners Amid the Decline
Despite the overall downturn, some funds still attracted investments. BlackRock ETF, the largest in terms of value, recorded a net inflow of $6 million, while Bitwise Fund received $8 million in new investments. However, Fidelity’s Bitcoin ETF saw a net reduction for the first time since May 2, losing $3 million.
Pending Economic Data and Market Projections
The market’s focus now shifts to the upcoming U.S. Consumer Price Index (CPI) data and the Federal Reserve meeting scheduled for this week. According to CME Group, there is a 99.4% probability that the Fed will maintain the current interest rates. Furthermore, a Reuters poll indicates that economists anticipate two reductions in interest rates by the Fed this year.
Conclusion
The abrupt end to the 19-day growth streak of U.S. Spot Bitcoin ETFs has introduced a wave of market adjustments, signaling the volatile nature of cryptocurrency investments. With the upcoming economic data releases and Federal Reserve decisions, investors will be closely monitoring potential impacts on the Bitcoin market. This period of fluctuation highlights the importance of staying informed about broader economic developments and their ramifications on cryptocurrency investments.
