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Chaos has erupted for spot Bitcoin ETFs as the streak of significant outflows has continued for seven days. Having no inflows of investment for the whole week has spread uncertainty among the Bitcoin (BTC) community. The crypto market is already suffering with lackluster performance, with BTC currently trading at lows of $56,672.
The major outflows from ETFs is only adding to the ongoing volatility on the market. According to the latest data from SosoValue, spot Bitcoin ETFs saw a total net outflow of $211 million on Sept. 5, a seven-day streak of outflows. Grayscale’s GBTC witnessed an outflow of $23.2175 million during this time.
While BlackRock’s IBIT stood at net zero daily inflow, and Fidelity’s FBTC saw a significant outflow of almost $149 million. Simultaneously, Bitwise’s BITB saw an outflow of $30 million. These figures show the ongoing negative sentiment among institutional investors as they have been sitting on the sidelines.
Meanwhile, the current total net asset value of Bitcoin spot ETFs is around $50 billion. While it is a big number considering the fact that these ETFs went live in January, there has not been any significant growth lately. This stagnant growth of Bitcoin ETFs has hampered crypto market growth as bearish sentiment is prevailing.
Bitcoin price faces bearish pressure
The price of BTC is currently down 4.74% over the last seven days, and it is trading at $56,672, as mentioned above. It has lost its support zone around the $60,000 level, which was a crucial level supporting the upward momentum. Now, it appears that the BTC price may see further losses, and more dips may come.
Furthermore, there were $39.53 million liquidations of Bitcoin over the last 24 hours. Out of the total, $27.55 million were in long liquidations, and investors with long positions were hard hit during this time. Overall, Bitcoin is in an extended consolidation period, and the chances of a trend reversal are grim for the time being.
Denys Serhiichuk
Gamza Khanzadaev