Bitcoin Spot ETFs Face $438M Net Outflow as Crypto Liquidations Hit $573M on November 25

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As a seasoned researcher with over a decade of experience in financial markets, I have witnessed numerous market fluctuations and trends. Today’s crypto market turbulence, characterized by significant outflows from most US-listed Bitcoin ETFs, is not an unfamiliar sight. However, it’s intriguing to see BlackRock’s iShares Bitcoin Trust (IBIT) bucking the trend with inflows.

On November 25th, the cryptocurrency market underwent instability due to a combined withdrawal of $438 million from US-based Bitcoin spot exchange-traded funds (ETFs). Simultaneously, significant price declines throughout the crypto sector triggered liquidations totaling $573.61 million, affecting more than 177,000 traders worldwide.

According to SoSoValue’s data, seven out of the eleven Bitcoin ETFs traded in the US experienced substantial withdrawals, ending a five-day run of positive investments. Prominent funds such as Grayscale Bitcoin Trust (GBTC) and Fidelity Wise Origin Bitcoin Fund (FBTC) were among the leading contributors to these withdrawals, with GBTC reporting losses of $158.24 million and FBTC recording outflows worth $134.72 million.

BlackRock’s IBIT Bucks the Trend

Other Exchange-Traded Funds (ETFs), such as ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB), similarly experienced withdrawals, as the price of Bitcoin dipped to around $92,000, approaching the $100,000 mark for the first time ever. This dip seems to have been triggered by investors’ reactions to market volatility.

On the other hand, BlackRock’s iShares Bitcoin Trust (IBIT) was exceptional with an influx of $267.79 million, marking a consecutive daily growth. Meanwhile, the Grayscale Bitcoin Mini Trust (BTC) added a minor inflow worth $420.46K. However, these gains weren’t sufficient to offset the overall negative net flow for the day.

Currently, as of November 25th, the combined value of assets held by Bitcoin spot ETFs amounts to approximately $102.23 billion. Over time, these ETFs have attracted a total of around $30.40 billion in investments.

Widespread Liquidations Hit Crypto Markets

As an analyst, I observed that Bitcoin’s recent price drop had a ripple effect across the broader cryptocurrency market, leading to significant liquidations. Specifically, data from CoinGlass shows that a staggering $573.61 million was wiped out in a single day, affecting more than 177,000 traders. Notably, centralized platforms like Binance, KuCoin, and Kraken accounted for the majority of these liquidations.

In the case of Bitcoin, traders experienced a total loss of approximately $161 million, out of which about $131 million was from long positions and $29 million from short positions. Meanwhile, Ethereum traders collectively faced a loss of around $94 million, with long traders losing around $62 million and short traders suffering a loss of around $32 million.

As I delve into the latest market trends, I find myself buoyed by the continued optimism among Bitcoin experts, despite some recent liquidations. Market gurus remain bullish about Bitcoin’s long-term growth trajectory. Analyst Ali Martinez, for instance, foresees BTC climbing to an impressive $150,000 during this cycle. He underscores the significance of crucial resistance levels and adoption trends in reaching this projected high.

In a similar vein, experienced analyst Peter Brandt anticipates Bitcoin reaching $150,000 by August of the coming year, emphasizing that we are currently in the ideal phase – or “sweet spot” – of its bull market cycle. Brandt’s forecast is backed by historical trends and increasing institutional investments. These predictions underscore a growing belief in Bitcoin’s potential to rebound and maintain its upward trajectory.

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2024-11-26 12:51