Bitcoin exchange-traded funds (ETFs) experienced a significant $400 million outflow on Thursday, breaking a six-day streak that had seen $4.7 billion in inflows as Bitcoin surged to new all-time highs. While the flagship cryptocurrency reached an unprecedented $93,477 earlier this week, it has since traded sideways, hovering around $90,000—a pause that analysts attribute to mixed economic signals and profit-taking by investors.
The outflows were unevenly distributed. BlackRock’s iShares Bitcoin Trust (IBIT) continued to attract investment, pulling in $125 million, while VanEck’s Bitcoin ETF (HODL) added $2.5 million, according to CoinGlass data. However, other funds, including Fidelity’s Wise Origin Bitcoin Fund (FBTC), ARK’s 21Shares Bitcoin ETF (ARKB), and Grayscale’s Bitcoin Trust (GBTC), collectively shed $530 million.
Bitcoin’s retreat from its peak also triggered the liquidation of $444 million worth of derivatives contracts, reflecting the market’s sensitivity to short-term resistance levels. Despite this, analysts remain optimistic about the cryptocurrency’s long-term trajectory, viewing the pullback as a healthy consolidation phase.
Economic data from the U.S. added a layer of complexity, cooling optimism about potential Federal Reserve rate cuts. Inflation figures released earlier this week met expectations but signaled challenges for the Fed’s monetary policy. The CME FedWatch Tool indicates a rise in the probability—now at 41.3%—that the Federal Open Markets Committee will keep interest rates steady in December, up from 25% before the inflation report.
BRN analyst Valentin Fournier acknowledged the market’s cautious sentiment but expressed confidence in Bitcoin’s resilience. “Although a short-term dip is possible, we expect investors to view this as an attractive entry opportunity, injecting new liquidity,” Fournier wrote.
The broader bullish narrative remains intact, bolstered by the pro-crypto stance of President-elect Donald Trump. Analysts expect Trump’s upcoming term to act as a strong catalyst for Bitcoin’s continued growth, with momentum building into Q1 2025 as his administration begins to implement crypto-friendly policies.
Despite the immediate outflows and macroeconomic uncertainty, the long-term outlook for Bitcoin ETFs remains positive, with institutional and retail investors alike seeing potential in the market’s current consolidation phase as a stepping stone toward the much-anticipated $100,000 milestone.
