Bittime - The crypto market was hit by turbulence after a massive selling wave hit a Bitcoin Exchange Traded Fund (ETF) listed in the United States. According to Farside Investors data, Bitcoin ETF outflowreached a new record high of $326 million on Tuesday (20/3), surpassing the previous record set the day before. This negative trend indicates a loss of investor confidence in these investment instruments.
As a result, the price of Bitcoin (BTC) experienced significant pressure, even breaking through the psychological level of $61,000.
Bitcoin ETF Hit by Massive Outflows
Farside Investors reported that accumulated outflows from all nine Bitcoin ETFs on the market reached $326 million on Tuesday. This figure significantly exceeds the previous day's outflow, providing clear evidence of the continued negative trend.
Among the nine registered ETFs, the BlackRock Bitcoin ETF (IBIT) recorded an inflow of only $75 million. Meanwhile, Fidelity Bitcoin ETF (FBTC) took second place with a net inflow of $39.6 million. Farside reports that other Bitcoin ETFs are experiencing minimal to nil inflows.
This condition reflects the cautious attitude of institutional investors ahead of the Federal Open Market Committee (FOMC) decision scheduled for the same day, March 20. Uncertainty regarding the Fed's monetary policy is believed to be the main factor behind this massive outflow.
Check Today's Crypto Market:
Grayscale Faces Heavy Pressure
In contrast to other Bitcoin ETFs, the Grayscale Bitcoin ETF (GBTC) actually experienced a fantastic amount of outflow. GBTC's recorded net outflow reached $444 million only on Tuesday. Worse, Grayscale also reported losing 6,860 Bitcoins, which is equivalent to around 1.9% of their total holdings.
This condition occurred even though Grayscale CEO, Michael Sonneshien, previously announced plans to reduce fees for GBTC. These efforts do not seem to be able to restore investor confidence in these investment products.
Financial commentator Tedtalksmacro highlighted that in the last two trading days, nearly $500 million has flowed out of spot-based Bitcoin ETFs. He attributed the cautious attitude or exit of investors from ETFs to anticipation of the FOMC decision and the ongoing tax season in the United States.
Tedtalksmacro predicts that normal trading patterns will return, but does not rule out the possibility of market volatility in the future.
Bitcoin Crashes Amid Confidence Crisis
Bitcoin (BTC) prices dipped below the $65,000 level on Tuesday as investor interest in spot-based Bitcoin ETFs listed in the United States weakened.
According to CoinGecko data, this leading crypto asset by market capitalization experienced a sharp decline of more than 10%, even falling below $61,000. Currently, Bitcoin is trading at around $63,830, down 0.7% in the last 24 hours.
The weakening of Bitcoin also suppresses the overall movement of the crypto market. Overall crypto market capitalization fell 2.4% to $2.48 trillion.
BTC/USDT Bitcoin Price Today
Source: Bittime.com
On March 21, 2024, the price of Bitcoin BTC/USDT was at $66,903 per coin, up 8.54% in 24 hours.
Also Read How to Buy Crypto:
Analyst Dissects the Roots of Crypto Market Correction
In a discussion forum on X (formerly known as Twitter), market analyst Kruger outlined a number of factors contributing to the crypto market decline. He highlighted the excessive use of leverage (loans) in the market, emphasizing the importance of the funding rate.
Kruger also touched on the market's negative reaction to potential delays in Ethereum ETF approval , coupled with negative inflows into Bitcoin ETFs. However, he reminded that the data reflects conditions lagging behind by one day. Additionally, Kruger highlighted the high level of hype surrounding Solana, which he called “shitcoin mania” that has gone too far.
Conclusion
The massive selling wave in Bitcoin ETFs was the main negative sentiment that dragged the BTC price below $62,000. Investors' cautious attitude ahead of the FOMC decision and tax season in the United States also exacerbated the crypto market correction.
Market analysts see excessive use of leverage, speculation around ETFs, and negative sentiment towards some crypto assets as factors supporting the correction. Investors are advised to pay attention to the latest developments and implement prudent investment strategies amidst fluctuating market conditions.
Check Crypto Prices Today:
How to Buy Bitcoin (BTC) on Bittime
You can buy and sell Bitcoin (BTC) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Bitcoin (BTC) is available on Bittime with the market pair BTC/IDR . To be able to buy BTC/IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Bitcoin (BTC) on Bittime.
Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
How Does Tether (USDT) Influence Global Economic Development? Read the explanation
Bernstein: Ethereum and Solana Are the Next Spotlight for Financial Market Domination
DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.