As a seasoned crypto investor with a decade of experience under my belt, I must admit that the recent trend of Bitcoin ETF outflows has me slightly concerned, especially amidst the political turmoil leading up to the U.S. election. The last thing we need is another round of market volatility, but then again, when does crypto ever play by the rules?
Today marks the second-largest single-day withdrawal for U.S.-based Bitcoin exchange-traded funds (ETFs), occurring one day prior to a highly contentious national election.
On November 4th, a total of 11 Bitcoin-based Exchange Traded Funds (ETFs) experienced a combined outflow of approximately $541.1 million, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) being the only one to register inflows amounting to $38.4 million, as reported by Farside Investors.
Today marks the greatest outflow day for Exchange-Traded Funds (ETFs), surpassing May 1st when ETFs recorded $563.7 million in outflows following a weekly 10.7% drop in Bitcoin’s value to around $60,000.
Traders dealing with Bitcoin have been reducing their involvement as they approach the U.S. election on Tuesday, November 5. Over the last week, Bitcoin has dropped by 4.6%, and in the last day alone, it has decreased by 1.7%. Currently, Bitcoin is trading at approximately $68,000.
On November 4th, the Fidelity Wise Origin Bitcoin Fund (FBTC) experienced the greatest withdrawal of funds totaling approximately $169.6 million, while the ARK 21Shares Bitcoin ETF (ARKB) saw a flow-out of around 138.3 million dollars.
Grayscale’s two Bitcoin funds jointly notched $153.2 million in outflows.
This year, The Grayscale Bitcoin Trust (GBTC) experienced only a few days with net inflows, but on one of those days, it had an outflow of approximately $63.7 million. Simultaneously, its smaller counterpart, the mini GBTC, recorded a more significant outflow of about $89.5 million – making these the fifth and third largest outflows in a single day.
Last Friday marked the conclusion of a trading week that witnessed approximately $2.2 billion being poured into U.S.-based Bitcoin investment funds. Despite this, there was a single day with an outflow of close to $55 million towards the end of the week.
James Butterfill, head of research at CoinShares, stated that the primary factor driving inflows throughout the week was an upbeat enthusiasm surrounding the possibility of a Republican win.
With recent shifts in public opinion as seen in the polls, there were small withdrawals of Bitcoin on Friday, demonstrating its current sensitivity towards the ongoing U.S. elections.” He further emphasized this point.
According to the data from FiveThirtyEight on November 4th, Kamala Harris and Donald Trump are very close in the latest polling results, with Harris slightly ahead by a margin of 1.2 percentage points.
On the cryptocurrency betting platform Polymarket, the likelihood of Trump winning the presidency has experienced a significant decrease. The chances dropped to a minimum of 53.8% on November 3, after having risen to 67% on October 30. Currently, his odds of winning are slightly over 59%.
It’s widely believed among cryptocurrency enthusiasts that the Republican nominee has a good chance of winning because of his supportive views on cryptocurrencies. Some analysts even predict that Bitcoin could reach $100,000 if he gets re-elected as President.
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2024-11-05 08:03