BTCUSDT: Bitcoin Dips Below $68K Amid $64M ETF Outflow; Asian Stocks Decline
The $64 Million outflows from Bitcoin ETFS in the US Exchange due to FED Meeting scheduled and European elections uncertainity. This outflows pulled down the BTCUSDT prices from $72K to $68K in just 5 trading days sessions. 2% fell down from highs shows cautious move in the Bitcoin market.
BTCUSDT is moving in Ascending channel and market has reached higher low area of the channel
On Tuesday, Asian stocks experienced a downturn as Treasuries, a common safe-haven asset, saw increased demand. The U.S.-listed spot Bitcoin (BTC) exchange-traded funds (ETFs) observed a combined outflow exceeding $64 million on Monday, signaling a cautious market sentiment.
Cryptocurrency Market
Bitcoin, the leading cryptocurrency, declined by over 2% to $67,900, extending its retreat from recent highs near $72,000. Ether, the second-largest cryptocurrency, mirrored this trend, briefly dipping below $3,550. The broader CoinDesk 20 Index also fell by 1% to 2,370 points.
Factors Influencing Cryptocurrency Prices
The decline in cryptocurrency prices coincided with the significant outflows from U.S.-listed spot Bitcoin ETFs, marking the first such loss since at least May 23. Market observers speculate that recent inflows might be driven by institutions engaging in non-directional basis trades rather than outright bullish positions.
Traditional Market Movements
In traditional markets, Chinese stocks led losses among Asian equity indices, dropping by over 1%. Lingering concerns about the property market and reports suggesting the Bank of Japan might reduce its bond purchases this week contributed to the overall negative sentiment.
Currency and Bond Market Dynamics
The dollar index, measuring the greenback’s value against major fiat currencies, consolidated gains over two days. Concurrently, prices for U.S. Treasuries, considered a safe haven, saw an uptick, leading to lower yields. The yield on the benchmark 10-year Treasury note dropped by three basis points to 4.45%.
Geo-Political and Macro-Economic Factors
Recent political developments in Europe, including gains for right-wing parties in elections and a snap poll announcement by France, revived concerns about the European Union’s cohesion, adding further uncertainty to the market sentiment.
Looking ahead, investors remain cautious ahead of Wednesday’s release of the U.S. Consumer Price Index (CPI) and the Federal Reserve’s interest rate decision. The Federal Open Market Committee (FOMC) meeting will include the publication of the central bank’s latest quarterly projections, including the interest rate dot plot, contributing to the apprehension among investors.
BTCUSDT: US Bitcoin ETFs Witness $65M Outflow, Ending 19-Day Inflow Streak
The recent significant outflows totaling $64 million from Bitcoin ETFs in the US market can be attributed to multifaceted factors, notably the impending Federal Reserve (Fed) meeting and the prevailing uncertainties surrounding European elections. These outflows have precipitated a rapid decline in BTCUSDT prices, plummeting from the lofty $72,000 mark to $68,000 within a mere span of 5 trading sessions.
BTCUSDT is moving in box pattern and market has fallen from the resistance area of the pattern
A discernible 2% descent from recent highs underscores a pervasive sense of caution permeating the Bitcoin market. Investors remain vigilant, closely scrutinizing developments pertaining to central bank policies, particularly the Fed’s deliberations concerning interest rate adjustments and economic prognostications. Concurrently, apprehensions stemming from the political tumult surrounding recent European electoral outcomes have exacerbated risk aversion sentiments among market participants.
In sum, these intricate dynamics have fostered a climate of circumspection within the Bitcoin market, compelling certain investors to divest from Bitcoin ETFs and, consequently, exerting adverse pressure on BTCUSDT prices.
On Monday, the 11 U.S. spot bitcoin exchange-traded funds (ETFs) experienced a collective net outflow of $64.93 million, marking the end of their longest inflow streak of 19 consecutive days.
Notable Outflows:
Grayscale’s GBTC: Led the pack in outflows this week, totaling $40 million.
Invesco and Galaxy Digital’s BTCO: Experienced net outflows of $20 million.
Valkyrie’s Bitcoin ETF: Reported net outflows of $16 million.
Fidelity’s FBTC: Witnessed $3 million in net outflows, marking its first negative flow since May 2.
Inflows and Accumulated Inflows:
BlackRock’s IBIT: Recorded net inflows of $6 million.
Bitwise’s BITB: Recorded $8 million of inflows.
The 19-day inflow streak that concluded last Friday amassed over $4 billion in net inflows. Since their inception in January, the 11 spot bitcoin ETFs have seen a total net inflow of $15.62 billion.
Market Dynamics:
Bitcoin’s price dipped last Friday following conflicting U.S. non-farm payroll and unemployment data, leading to uncertainty and prompting investors to move away from riskier assets. As of now, Bitcoin is trading at $68,311.
Market Anticipation:
U.S. Consumer Price Index (CPI): Investors are awaiting its release, along with the Federal Open Market Committee meeting expected later this week.
Federal Reserve’s Interest Rate Decision: While the CME Group predicts a 99.4% chance of the Fed maintaining the current interest rate, a Reuters poll of economists suggests the Fed may cut rates twice this year, starting in September.
ETF Issuance:
U.S. ETF issuers are still awaiting feedback from the Securities and Exchange Commission (SEC) on their S-1 registration statements, submitted around the end of last month. Approval of these S-1 forms by the SEC is necessary for the official launch of spot ether funds.
Future Impact of Spot Ether ETFs:
Once launched, spot ether ETFs may capture up to 20% of the current flows directed towards spot bitcoin ETFs, according to comments by Bitfinex head of derivatives Jag Kooner.
BTCUSDT: Today’s Bitcoin (BTC) News: Federal Reserve Concerns Dent Demand for BTC-Spot ETFs
The recent significant outflows totaling $64 million from Bitcoin ETFs in the US market can be attributed to multifaceted factors, notably the impending Federal Reserve (Fed) meeting and the prevailing uncertainties surrounding European elections. These outflows have precipitated a rapid decline in BTCUSDT prices, plummeting from the lofty $72,000 mark to $68,000 within a mere span of 5 trading sessions.
BTCUSDT Market price is moving in Ascending channel and market has reached higher high area of the channel
A discernible 2% descent from recent highs underscores a pervasive sense of caution permeating the Bitcoin market. Investors remain vigilant, closely scrutinizing developments pertaining to central bank policies, particularly the Fed’s deliberations concerning interest rate adjustments and economic prognostications. Concurrently, apprehensions stemming from the political tumult surrounding recent European electoral outcomes have exacerbated risk aversion sentiments among market participants.
In sum, these intricate dynamics have fostered a climate of circumspection within the Bitcoin market, compelling certain investors to divest from Bitcoin ETFs and, consequently, exerting adverse pressure on BTCUSDT prices.
On Monday (June 10), the US market for Bitcoin (BTC) spot exchange-traded funds (ETFs) faced outflows for the first time since May 10, reflecting a cautious sentiment among investors.
Bitcoin Performance:
Bitcoin experienced a slight decline of 0.16% on Monday, partially reversing the gain from the previous day, closing the session at $69,570. Fear surrounding the Federal Reserve’s monetary policy decisions impacted buyer demand for BTC and the broader crypto market.
Market Sentiment:
Investors awaited key events including the US Consumer Price Index (CPI) report, the Federal Open Market Committee (FOMC) interest rate decision, economic projections, and the subsequent press conference, which influenced market sentiment.
Federal Reserve Influence:
The recent US Jobs Report tempered expectations of a September Fed rate hike, leading to uncertainty about the Fed’s future rate path. On Monday, investor sentiment regarding the Fed’s stance continued to shift, with a higher probability of the Fed maintaining rates in September, according to the CME FedWatch Tool.
Impact on BTC-Spot ETFs:
Investor uncertainty surrounding the Fed’s rate path affected buyer demand for US BTC-spot ETFs, leading to net outflows in several major funds:
Grayscale Bitcoin Trust (GBTC) saw net outflows of $39.5 million.
Invesco Galaxy Bitcoin ETF (BTCO) experienced net outflows of $20.5 million.
Fidelity Wise Origin Bitcoin Fund (FBTC) witnessed net outflows of $3.0 million.
Total Outflows:
Excluding flow data for iShares Bitcoin Trust (IBIT) and Valkyrie Bitcoin Fund (BRRR), the US BTC-spot ETF market reported total net outflows of $55.4 million on Monday.
Conclusion:
The US BTC-spot ETF market experienced outflows for the first time in a month, reflecting investor caution amidst uncertainties surrounding the Federal Reserve’s monetary policy decisions. Meanwhile, Ethereum’s performance remained subdued, with no significant developments in the US ETH-spot ETF market.
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