BTC Price Recovers After Monthly Lows Despite Continuous Bitcoin ETF Outflows
The ETFs will see some releaf today due to the national US holiday.
The spot Bitcoin ETFs in the United States have reversed the late May/early June trend, with several consecutive days of outflows totaling more than $600 million. These negative events on the ETF front have influenced the price of the underlying asset, as well as the whole crypto market, with BTC falling to a monthly low before rebounding late last night.
Last week, CryptoPotato revealed that the most spectacular string of straight days of inflows into ETFs had stopped after nearly a month of strong flows. This occurred last Monday when all US-based ETFs experienced slight outflows totaling $64.9 million. A day later, outflows more than tripled due to concerns surrounding the US CPI statistics and the upcoming FOMC meeting.
When they came out, the inflation figures looked encouraging, but the Fed decided not to decrease interest rates; Wednesday saw inflows of slightly over $100 million. However, the trend shifted again, and ETFs have not had a positive day since. More than $225 million was withdrawn on June 13, over $190 million on Friday, $145.9 million on Monday, and slightly more than $150 million yesterday. Fidelity’s FBTC has been at the vanguard of the outflows, with more than $80 million in withdrawals over four days. As a result, FBTC has outperformed even Grayscale’s GBTC in this downward trend. These changes hurt bitcoin’s price swings.
However, it recovered and is now more than a grand above the local low. Altcoins fell heavily yesterday, but the most are already on the rebound. It’s worth mentioning that June 19 (Juneteenth) is an official holiday in the United States, therefore Wall Street will be closed, and ETFs will take a break today.