Bitcoin Experiences Significant Outflows as Major Funds Retreat
In a recent turn of events, Bitcoin has encountered substantial selling pressure, primarily driven by large investment funds retracting their capital at an uncommon pace. This development has raised concerns among traders and investors alike.
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Notable Outflows Impact Prominent Bitcoin ETFs
Recent statistics indicate a significant wave of withdrawals from US-listed spot Bitcoin ETFs, marking a consecutive session of losses. According to SoSoValue, nearly $897 million exited these investment avenues in a single day, highlighting a broader retreat from institutional participants. Despite previous expectations of a strong rebound following the resolution of political uncertainties, the market has seen a contrary reaction.
Bitcoin Price Thresholds and Market Sentiment
Market analyst Ki Young Ju from CryptoQuant has cautioned that Bitcoin’s overarching uptrend could face challenges if its value dips below $94,000. This level represents the average acquisition cost for investors who entered the market between six to twelve months ago.
Emerging Altcoin ETFs Gain Traction
In contrast to the struggles faced by Bitcoin funds, a newly launched altcoin ETF has demonstrated remarkable performance. The Canary Capital XRP (XRPC) ETF achieved a noteworthy $58 million in trading volume on its first day. Although this figure slightly surpassed the $57 million recorded by a Solana ETF earlier in the year, it is considered the most successful debut among approximately 900 ETF launches in 2025. Meanwhile, Ether ETFs witnessed withdrawals amounting to $259 million, while Solana ETFs continued their inflow streak with an additional $1.5 million.
Market Reactions to Speculation on Federal Reserve Rate Cuts
As Bitcoin’s value fell below the $100,000 mark, trading around $96,900, market sentiment was influenced by dwindling expectations of a Federal Reserve rate cut in December. The probability of a 25 basis point reduction at the upcoming meeting has decreased to 45%, down from 63% the previous week. The recent government shutdown has contributed to uncertainties, creating gaps in official economic data and prompting traders to exercise caution.
Weekend Outlook: Crypto Market Faces Mixed Sentiment
Institutional demand appears to be easing, as evidenced by repeated fund outflows and a slowdown in treasury purchases. Some analysts suggest the market has been experiencing a subtle bearish phase for several months. Hunter Horsley from Bitwise believes the downturn may be nearing its end, although broader risk markets have offered limited support. Conversely, ongoing ETF withdrawals could prolong Bitcoin’s current downward trajectory, now approaching its third consecutive week.
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