On January 8th, when Bitcoin dropped below the significant $100,000 mark, investors withdrew approximately $570 million from U.S.-based Bitcoin exchange-traded funds (ETFs), causing a spike in liquidations, as a more simplified explanation might read:
Investors withdrew around $570 million from American Bitcoin ETFs on January 8th, after the price of Bitcoin fell below $100,000. This withdrawal led to an increase in liquidations (selling assets quickly at a loss).
On January 8th, Bitcoin ETFs experienced one of their second-highest daily net outflows since they were launched, totaling approximately $569.08 million. This figure is only $100 million less than the outflows recorded on December 19th, which amounted to $671.9 million, according to data from Farside.
Approximately 45% of the total daily withdrawals, amounting to $258.7 million, was recorded by the Fidelity Wise Origin Bitcoin Fund (FBTC), marking its largest single-day withdrawal on record.
Markets still in “greed” despite a large amount of liquidations
During the last 24 hours, approximately $521.02 million worth of cryptocurrencies were withdrawn from the market, as per the data provided by CoinGlass.
The dip in Bitcoin’s price occurred when it momentarily dropped to $92,500, primarily due to increasing worries about the potential tightening of the U.S. Federal Reserve’s monetary policy in 2025, as suggested by Ryan Lee, chief analyst at Bitget Research.
According to Lee, the decrease in Bitcoin’s value is mainly due to robust U.S. economic data suggesting possible increases in interest rates.
At the time of publication, Bitcoin is trading at $94,401, according to CoinMarketCap data.
On the other hand, based on the Crypto Fear & Greed Index, the overall feeling in the crypto market hasn’t dropped excessively.
As a researcher studying the market sentiment of Bitcoin and other cryptocurrencies, I’ve noticed that the index has dipped recently. Just a month ago, we saw an “Extreme Greed” score of 78, but now it stands at 69, a decrease of nine points. This indicates a shift in investor behavior, possibly suggesting a more cautious outlook in the market.
Bitcoin has had an “undecisive start” to 2025
Some investors think that it’s premature to make definitive judgments about Bitcoin’s price fluctuations given its relatively recent emergence on the financial market.
In a January 9th post on X, Daan Crypto Trades noted that “the information provided so far isn’t very revealing, particularly when considering that December defied the trend and the beginning of the year is often quite volatile.
Dan mentioned that although Bitcoin reached a “peak within its current range” around the beginning of this month, reaching approximately $102,500, it established a fresh monthly minimum on January 8th as it retreated to about $92,500.
“Pretty undecisive start of the year so far,” he said.
In this post, we’re simply providing some basic knowledge, but it’s crucial to remember that this information isn’t meant to serve as legal or financial advice. The ideas, perspectives, and viewpoints shared here are solely those of the author and do not necessarily align with the opinions held by CryptoMoon.
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2025-01-09 09:47