U.S. Spot Bitcoin ETFs See Significant Outflows
U.S. spot Bitcoin exchange-traded funds have experienced their second-largest weekly outflow since launching in 2024, with $1.23 billion exiting last week. The substantial withdrawal marks a dramatic shift from the prior week's $2.7 billion inflow, according to data from SoSoValue.
Friday alone saw $366.6 million flow out of Bitcoin ETFs, capping off a turbulent week for the digital asset market. The only larger weekly outflow occurred during the week ending Feb. 28, when funds recorded $2.6 billion in exits.
Market Volatility and Bitcoin's Price Action
The massive withdrawals coincided with severe price volatility as Bitcoin plummeted from approximately $121,000 on Oct. 10 to around $103,700 by Oct. 17. The world's largest cryptocurrency has since recovered, climbing 4.2% in 24 hours to reach $111,268 as of Monday morning Eastern Time.
Ethereum ETFs Also Face Headwinds
Ethereum ETFs also faced headwinds during the same period. Spot Ethereum funds recorded net outflows totaling $311.8 million last week, a stark reversal from the previous week's $488.3 million inflow.
Macroeconomic Factors Influencing Recovery
Market analysts point to shifting macroeconomic expectations as a potential catalyst for recovery. Traders are now anticipating a possible interest-rate cut later this month alongside an early conclusion to quantitative tightening policies.
BTC Markets crypto analyst Rachael Lucas noted that Federal Reserve Chair Jerome Powell's recent acknowledgment of labor market softness, despite firm economic growth, has created a more favorable environment. This shift has reduced bond yields and enhanced liquidity conditions for digital assets.
Signs of Stabilization in the Cryptocurrency Market
The cryptocurrency market showed signs of stabilization over the weekend. Bitcoin held above $111,000 while Ethereum jumped 5% to $4,082, suggesting investor confidence may be gradually returning despite the recent turbulence.