Bitcoin remains weak at $57,700, despite Federal Reserve Chairman Jerome Powell's dovish remarks. This weakness comes as the BlackRock Bitcoin Spot ETF (IBIT), managing $9 trillion in assets, experienced its first net outflow, allowing bears to continue steering the market direction.
The Federal Reserve maintained its interest rate target range at 5.25-5.50% on Wednesday, aligning with market expectations. This decision has spurred demand for Bitcoin and the broader cryptocurrency market.
The Federal Open Market Committee's (FOMC) press conference was also crypto-friendly, with Powell emphasizing the lack of progress towards reducing inflation to 2%. Despite this, Powell threw cold water on expectations for a Fed rate cut, and the press conference was not as hawkish as the market feared.
The U.S. Bitcoin Spot ETF market responded to the press conference and adjusted the Fed's interest rate path.
According to Farside Investors, the U.S. Bitcoin Spot ETF market saw net outflows of $511.7 million on Wednesday, not including the flow data from IBIT, the Invesco Galaxy Bitcoin ETF (BTCO), and the Valkyrie Bitcoin Spot ETF (BRR).
SoSoValue data indicates that the BlackRock Bitcoin Spot ETF experienced its first net outflows, amounting to about $36.93 million on the day. Notably, the premium/discount rates across various ETFs were generally at a discount, with the BlackRock ETF at a -1.67% discount rate.
Source: SoSoValue
Grayscale's GBTC saw net outflows of $167.4 million, which is higher than the $93.2 million on April 30.
Fidelity's FBTC recorded net outflows of $191.1 million, the highest since its launch on January 11. Notably, FBTC has experienced net outflows for five consecutive trading days.
There were no trades in the Hong Kong Bitcoin and Ethereum Spot ETF markets, as the Hong Kong market was closed on Wednesday due to the Labor Day holiday.
Bitcoin stability persists despite GBTC outflows, hovering above $70,900. Market divided on impact; some cite fee structure, others anticipate downward pressure. Traders predict stability with a chance of reaching $75,000 or $80,000 by month-end.
EdmundUS spot bitcoin ETFs experience significant outflows, with GBTC leading the decline. Blackrock's IBIT and Fidelity's FBTC see slight inflows amidst the overall trend. Despite fluctuations, US spot bitcoin ETFs maintain substantial trade volume and market capitalization.
Xu LinGrayscale's GBTC Outflows Pressure US Bitcoin ETFs. Spot ETFs See Net Outflows after Four Days. Bitwise and iShares Buck Trend. Despite Recent Outflows, Continued Investor Interest in Bitcoin ETFs.
EdmundGrayscale Bitcoin Trust ETF (GBTC) witnesses over $10 billion in net outflows since ETF conversion. High fees at 1.5% compared to competitors impact GBTC's performance. Despite recent price surge, persistent outflows raise concerns over GBTC's stability.
Huang BoGrayscale's Bitcoin Trust (GBTC) experienced substantial outflows, notably transferring significant BTC amounts to Coinbase Prime, impacting Bitcoin's market dynamics. These movements, part of the ETF conversion, reflect a complex interplay between institutional decisions and cryptocurrency valuations.
JoyDespite GBTC's significant outflows and concerns about market absorption, Bitcoin manages to maintain support at $40,000. The market remains uncertain, with conflicting forecasts from analysts and traders.
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