US Bitcoin ETFs See Record Outflows Amid Broader Market Uncertainty
TLDR
- US Bitcoin ETFs see longest streak of daily net outflows since launch, with investors withdrawing $1.2 billion in 8 days.
- Global economic growth concerns lead to selloff affecting stocks, commodities, despite Bitcoin's 30% YTD rally.
- Bitcoin expected to trade between $53,000 to $57,000 range awaiting key US inflation data amid recent momentum cool-off.
US Bitcoin exchange-traded funds (ETFs) have experienced their longest streak of daily net outflows since launching at the start of the year.
Over the eight days through September 6, investors pulled nearly $1.2 billion from a group of 12 Bitcoin ETFs, according to data from Bloomberg. The withdrawals come amid broader concerns about global economic growth, which have impacted both stocks and commodities.
While Bitcoin’s year-to-date rally remains around 30%, the recent selloff has cooled its momentum, and the cryptocurrency is likely to trade within a $53,000 to $57,000 range ahead of key US inflation data.
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Key Takeaways
The pullback in Bitcoin ETFs coincides with mixed US jobs data and deflationary concerns in China, contributing to heightened uncertainty in financial markets. Bitcoin itself has faced challenges, falling roughly 7% in September. However, the cryptocurrency saw a modest 2.4% recovery on Monday, rising to $55,682 by 10 a.m. in New York. Some relief for Bitcoin could be attributed to prominent influencers closing short positions and political developments, including Donald Trump’s rise in pro-crypto polling ahead of the US presidential election, which may have sparked increased demand for options hedging. The outcome of the US inflation data could shape expectations for Federal Reserve policy, influencing Bitcoin’s future trajectory.
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