The price of Bitcoin (BTC) collapsed to just $61,231 earlier today, according to CoinGecko data. The flagship cryptocurrency is down 17% from its all-time high.
Yet, despite the severe price drop, the Bitcoin market sentiment remains in the greed territory.
More than $505 million worth of long positions have been liquidated over the past 24 hours.
Underwhelming ETF numbers
The most recent drop coincided with Bitcoin exchange-traded funds (ETFs) posting their biggest outflows to date. On Tuesday, a whopping $326.2 million flowed out of these products. Grayscale's GBTC appears to be the main bearish headwind with a staggering $443 million outflow.
BlackRock's and Fidelity's ETF products recorded very modest inflows ($75.2 million and $39.6 million, respectively).
This came after these ETFs kept shattering records earlier this month, pushing the price of Bitcoin to a new all-time high.
The upcoming Fed decision
Some investors might be taking a wait-and-see approach ahead of the much-anticipated decision by the Federal Reserve that is going to be unveiled on Wednesday.
The market consensus appears to be that the Fed will keep the benchmark interest rate unchanged for now, but concerns remain about its future direction. Stubborn inflation could prompt the central bank to delay rate cuts, which would not bode well for the bulls. Investors might be unwilling to bet on Bitcoin ahead of the decision, which could be the reason behind the underwhelming ETF numbers.
According to Goldman Sachs, the most recent cryptocurrency rally was mainly propped up by retail investors. However, there is also some institutional money coming into the market.
Arman Shirinyan
Yuri Molchan
Godfrey Benjamin
