US Spot Bitcoin ETFs Experience a Negative Flow as Bitcoin Price Struggles

The US spot Bitcoin ETFs experienced an unexpected negative streak only days after registering a record $3 billion in cash inflows. The overall poor performance comes amidst a wave of long liquidations that have seen the price of Bitcoin dip below $93,000.

The latest market data from SoSoValue show the Bitwise BITB leading the haemorrhage, with reported outflows of $280 million out of the net cash outflow of $438.8 million from the combined US spot Bitcoin ETFs on November 25. The negative outflow comes hot on the heels of a five-day streak of positive inflows, during which a record $3.38 billion in weekly inflows was recorded.

Combined Outflows Exceeded $438.8 Million

The negative outflow affecting the US spot Bitcoin ETF market saw the Grayscale GBTC, Fidelity FBTC, and Ark & 21 Shares Bitcoin ETF (ARKB) experienced a combined outflow amounting to at least $158 million, $134 million and $110 million respectively.

Other market US spot Bitcoin ETFs that experienced unassertive outflows include the Invesco BTCO, the VanEck HODL, and the Valkyrie BRRR, which recorded $10.89 million, $8.05 million, and $3.09 million in outflows, respectively. Contrary to what the rest of the market was experiencing, the BlackRock IBIT ETF experienced a positive net inflow of at least $267 million, meaning it currently holds up to $47 billion worth of assets under management (AUM).

US Spot Bitcoin ETFs Haemorrhage Coincided with a Bitcoin Price Dip

The significant US spot Bitcoin ETFs haemorrhage coincided with a Bitcoin price dip of over 6% on November 25, with the leading digital asset dropping from $98,850 to $92,775 during the Asian market hours. The leading cryptocurrency by market cap experienced at least $116 million in long liquidations to trade at an average of $94,646 per BTC early Tuesday.

The ongoing Bitcoin price dip means traders may have suffered some heavy liquidation even after BTC failed to reach the highly anticipated all-time high of $100K by a mere $300.

The leveraged cryptocurrency market has lost at least $1 billion during the last two days alone.  The overall effect of the potential long squeeze seems to have increased dramatically, leading to the Bitcoin price dip and somewhat bearish correction.

Experts now point to a dip that could go to as low as $90,000 before the flagship cryptocurrency could locate a new support level above $85,000 as it rebounds towards the highly anticipated new all-time high.

Spot Ethereum ETFs also Caught a Cold.

As the US spot Bitcoin ETFs sneezed and continued to experience their most recent low moments, the nine spot Ethereum ETFs have also caught a cold. However, the ETH ETFs experienced a relatively slowed-down inflow with at least $2.38 million inflows on November 25 compared to the previous day’s $91.21 million.

The Bitwise ETHW received at least $8.75 million, Fidelity FETH got $4.36 million, and VanEck contributed at least $2.55 million with its ETHV.  Grayscale, with its ETHE, led the pack of outflows with $7.65 million leaving the fund, while the Grayscale Ethereum Mini Trust and 21Shares’ CETH lost $3.96 million and $1.22 million in outflows, respectively.

Despite the negative streak surrounding the US spot Bitcoin ETFs and the latest Bitcoin price dip, there is a strong institutional interest in Bitcoin. According to analyst Anthony Pompliano, the story of Bitcoin remains a bottom-up adoption issue, meaning while individuals lead the way, institutions and governments are slowly but surely following suit.

Pompliano opines that pension funds and central banks are among the large capital pools watching as Bitcoin nears $2 trillion in market cap.

Conclusion

The cryptocurrency market has enough liquidity around the highly anticipated all-time high of $100K, especially after recently reaching the coveted $99,700. The ongoing haemorrhage notwithstanding, many analysts believe what we are experiencing is only a short squeeze. Should Bitcoin break out of the current squeeze, it will face some resistance around the $100,000 mark, which could create consolidation before eventually breaking out.

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