While the price of Bitcoin fell 4.61% on the 24th, it was revealed that there was a net outflow worth $170 million in one day from the US Bitcoin spot exchange-traded fund (ETF) market, which was pointed out as the epicenter of the sell-off.
What's new: According to data from asset management company Farside, there was a net outflow of about $174.5 million from the U.S. Bitcoin spot ETF market on the 24th (local time). This is a net outflow record for 7 consecutive business days since the 13th.
The top net outflow was Grayscale Bitcoin Spot ETF, with $90.4 million out. Second place went to Fidelity Bitcoin Spot ETF (FBTC) with an outflow of $44.8 million, and third place went to Franklin Templeton Bitcoin Spot ETF (EZBC) with an outflow of $20.9 million.
BlackRock Bitcoin Spot ETF (IBIT), which ranks first in Bitcoin holdings, recorded no net outflow or net inflow for the second day today.
Background of the issue: On this day, various negative news in terms of supply and demand poured into the Bitcoin market. The German government moved its Bitcoin holdings to a cryptocurrency exchange, and the bankrupt large exchange Mt. Gox paid 142,000 Bitcoin and 143,000 Bitcoin Cash, which were originally supposed to be given to creditors, in early July. He said he would do it.
Since the 13th, the basic buying momentum of the Bitcoin market has been significantly damaged, and the Bitcoin price has fallen deeply due to this negative news. At one point in the early morning of the 25th, it plummeted to the $58,500 level, accompanied by strong trading volume. Derivatives positions worth $360 million were liquidated in just one day.
Important point: The deepest decline of the day occurred around 5:30 am Korean time. In US time, this is after the Bitcoin spot ETF market closed. In the market, there was speculation that individual investors who had invested in ETFs may have started buying and selling when the price of Bitcoin fell below the purchase price, but according to Farside data, such possibility appears to be limited.
This is because ETF net outflow was small despite the highest trading volume in the past month. The net outflow record of $174.5 million released today is only the third largest outflow compared to the outflow in the past seven business days. This means that there has not yet been a 'panic sell' among ETF investors, where they throw away their assets out of fear.
What happens next: The trigger that caused the deep decline in the Bitcoin chart that day was likely the Mt. Gox bond redemption news. Fortunately, the market price is stabilizing as some analysis experts come up with the analysis that “about 6,500 BTC will be sold on the market due to the Mount Gox case.” Experts explained, “Many of Mount Gox’s creditors are technically proficient long-term Bitcoin users with early adopter tendencies.”
Bitcoin prices began to rise this morning. However, the situation, in which Bitcoin purchasing momentum has decreased and exchange liquidity has plummeted over the past few days, still shows no signs of improving. As of 3 p.m. on the 25th, the price of Bitcoin is recording $61,010 per piece.
