Analysts attribute a large part of these outflows to market nervousness regarding the latest decision by the United States Federal Reserve (Fed) and the recent reading of inflation in the US economy.
The concern in the market extends to the exchange traded funds (ETF) Bitcoin (BTC) spot. These financial instruments, which had been registering almost a month of net capital inflowsnow face two consecutive days of net outflowswith Tuesday’s day marking the worst since May 1.
Specifically, on June 11, These ETFs experienced a withdrawal of more than $200 millionaccording to data from Farside Investors. Grayscale’s GBTC fund was the hardest hit, with net outflows of $121 million.
Since converting to a spot ETF in January, GBTC has lost $18.093 billion. Other funds also suffered losses: ARK Invest’s ARKB (-$56.5 million), Bitwise’s BITB (-11.7 million), Fidelity’s FBTC (-7.4 million) and VanEck’s HODL (- -3.8 million). Of the 11 ETFs, only five, including BlackRock’s IBIT, avoided losses, although they also did not register capital inflows.
Cryptocurrencies: what data the market analyzes
Analysts attribute a large part of these outflows to market nervousness regarding the latest decision by the United States Federal Reserve (Fed) and the recent reading of inflation in the US economy. The central bank is expected to keep interest rates at their current levels, but with stricter than anticipated cuts forecasts.
“We predict the Fed will be more ‘hawkish’ compared to the March meeting, when they projected three rate cuts per year between 2024 and 2026. We now estimate only two cuts in 2024, and possibly some additional indication in that direction,” they point out. Bankinter analysts.
Despite these fears, QCP Capital experts remain optimistic. The Singapore-based cryptocurrency investment firm is of the opinion that “despite the short-term challenges, this could be a good opportunity to accumulate coins.”
Furthermore, these analysts highlight the possible approval of spot ethereum (ETH) ETFs as a major catalyst for the broader market. Likewise, an eventual victory by Donald Trump in the November presidential elections could significantly boost cryptocurrency prices.
Source: Ambito
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