As the inflow of funds into Bitcoin spot ETF slows down and concerns about the narrowing room for US interest rate cuts in the market arise, the price of Bitcoin has dropped from its historical high of $73,798 to around $61,600 in the past week, a decrease of nearly 15%. This has raised doubts among people about whether cryptocurrencies have temporarily peaked.
According to Bloomberg’s report, the uncertainty behind the Bitcoin decline lies in whether the higher-than-target inflation rate will prompt US Federal Reserve policymakers to adjust their expectations for interest rate cuts at Wednesday’s meeting, indicating that the background for speculative investments will become more unfavorable. At the same time, the demand for US Bitcoin spot ETFs has also cooled down, as Monday’s net outflow shows that investors are withdrawing cash from these products.
Preliminary statistics from Farside Investors show that the US Bitcoin spot ETF had another net outflow on Tuesday (19th), totaling $326 million. Among them, Grayscale’s Bitcoin spot ETF (GBTC) saw a net outflow of approximately $443 million.
Although the Bitcoin spot ETF “iShares Bitcoin Trust” (IBIT) issued by BlackRock still had a net inflow, the amount decreased from $451 million the previous day to $75.2 million.
K33 Research, a cryptocurrency research company, believes that the massive “washout” of bullish bets using derivatives may continue, indicating a potential obstacle to any rapid recovery in the digital asset market. Anders Helseth and Vetle Lunde from K33 Research wrote in a report:
Coinglass data shows that the total amount of liquidated long and short positions on the entire network in the past 24 hours exceeded $657 million, with approximately $492 million worth of long positions being liquidated.
Source:
Coinglass
