On November 4, Bitcoin ETFs faced a major setback as traders pulled out an impressive $541 million, marking the second-highest daily outflow ever recorded. This significant withdrawal is attributed to heightened market anxiety surrounding the upcoming U.S. elections.
Which ETF Experienced the Most Withdrawals?
Fidelity’s FBTC ETF led the pack with a staggering outflow of $170 million. Other notable withdrawals included $138 million from the ARKB fund and $80 million from the BITB fund. These moves suggest traders are opting to avoid potential market instability linked to election outcomes and decisions made by the Federal Reserve.
How Are Bitcoin Prices Being Affected?
The significant ETF outflows have already begun to influence Bitcoin prices, which dipped by 0.5% in the past 24 hours, settling at $68,700. Over the week, it fell to a low of $67,300, reflecting the cautious mood in the market as critical economic and political events loom in the U.S.
Despite the outflows, Bitcoin’s trading volume surged by 23.57% to $42 billion, along with a 1.17% increase in open positions. Currently, Bitcoin’s market cap is estimated at $1.36 trillion, indicating that traders may be wary but not entirely abandoning the market.
- Traders are withdrawing funds to mitigate risks associated with upcoming elections.
- BlackRock’s IBIT fund bucked the trend with a net inflow of $38 million.
- Long-term expectations for Bitcoin often improve post-elections, despite short-term fluctuations.
Traders are advised to remain vigilant and prioritize risk management strategies. The political and economic landscape in the U.S. is likely to play a crucial role in determining the trajectory of Bitcoin and the broader cryptocurrency market.