Is it due to the US Federal Reserve's 'hawkish actions'?... $600 million evaporated from Bitcoin fund last week

BTC fund weekly net outflow is highest since March
Investors withdraw funds from BTC funds and start betting on decline

It was revealed that the weekly net outflow of funds from Bitcoin (BTC)-related funds last week was the highest since March of this year due to the disappearance of expectations about a cut in the U.S. benchmark interest rate.

According to a report published by on-chain analysis platform CoinShares on the 17th, the net outflow of Bitcoin funds in the third week of June was approximately $600 million (approximately KRW 827.8 billion). This is the largest leak since the fourth week of March.

The main reason for the outflow of funds from the Bitcoin fund is interpreted to be the results of the meeting of the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve, which showed a hawkish stance.

At its regular meeting last week, the FOMC announced that it would freeze the benchmark interest rate at 5.25-5.5% and limit the number of interest rate cuts to one within the year, citing concerns that inflation would still persist. The message of the delayed interest rate cut announced by the FOMC led to a decline in digital asset prices and an outflow of funds from the Bitcoin fund market.

Many investors took money out of Bitcoin funds and bet on Bitcoin going short. According to the report, Bitcoin short betting amounted to about $1.8 million in the third week of June.

Reporter Seungwon Kwon ksw@