Bitcoin ETFs Record Enormous Outflows

On Tuesday, Bitcoin exchange-traded funds (ETFs) recorded a total of $288 million worth of outflows, according to data provided by Farside Investors. 

Fidelity’s FBTC alone recorded more than $162 million worth of outflows. 

Grayscale’s GBTC also suffered a staggering $50 million worth of outflows. 

Ark’s ARKB and Bitwise’s BITB are also in double-digit territory with $33.6 million and $25 million, respectively. 

Related

Tue, 08/13/2024 - 12:02

Arthur Hayes Predicts Epic Altcoin Season, But Only After This

Gamza Khanzadaev

As reported by U.Today, BlackRock’s Bitcoin ETF also recorded its second day of negative flows since the debut of the ETF in early January. 

Earlier today, the price of the leading cryptocurrency collapsed below the $56,000 level. 

Former BitMEX CEO Arthur Hayes recently predicted that the cryptocurrency could potentially revisit the $50,000 level. 

“Bitcoin, at best, will chop around these levels and, at worst, slowly leak lower towards $50,000,” he wrote in a recent blog post. 

At the same time, he believes that altcoins could dive deeper “into the gutter,” meaning that Bitcoin market dominance is likely to increase. 

However, Hayes has stressed that his bearishness is only temporary. 

The U.S. Federal Reserve is expected to cut rates later this September for the first time in four years. However, it is unclear whether the Fed will opt for a 25-basis point rate cut or a 50-basis point cut. Of course, the latter would be more beneficial for risk assets like Bitcoin. The central bank is expected to continue monetary easing until at least 2026. 

A lot of economists believe that the Fed could eventually achieve a soft landing with careful rate cuts, meaning that the US economy will manage to avoid another recession. Neil Dutta of Renaissance Macro recently said that the much-coveted soft landing is currently the firm's base case.