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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Jan 09, 2025 12:32 UTC
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Bitcoin ETFs Face Record Outflows: Will BTC Price Drop to $90K?
Bitcoin price fell 10% to $93k, coinciding with significant outflows from spot Bitcoin ETFs, led by Fidelity, Ark Invest, and BlackRock.
Renewed inflation fears and market volatility triggered these outflows and impacted broader crypto markets.
Despite the "Greed" sentiment in the Crypto Fear & Greed Index, bearish momentum is evident in Bitcoin's price action and RSI.
After a strong start to the year, with Bitcoin briefly reclaiming the $102K mark, the cryptocurrency has struggled to maintain its momentum. As of January 9, Bitcoin dropped by 10%, falling to $93K. This drop comes amid the second-largest daily outflow from Bitcoin spot ETFs in the U.S.
Massive Outflows from Bitcoin ETFs
However, leading the outflow charge Fidelity’s FBTC saw the highest outflow, losing $258 million, On January 8, Bitcoin spot ETFs recorded outflows of $568 million, the second-highest withdrawal since these funds launched. According to data from SoSoValue, the largest outflow occurred just weeks earlier, on December 19, reaching $680 million.
Leading the outflow was Fidelity’s FBTC, which lost $258 million, followed by Ark Investment with $148.3 million and BlackRock’s IBIT, which saw $124 million exit.
These outflows come as inflation fears in the U.S. have caused volatility in the bond market, which has affected risk assets, including Bitcoin. But Bitcoin wasn’t the only cryptocurrency facing challenges.
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ETH ETFs Hit Hard
Ether ETFs also saw significant outflows, losing $159.3 million on January 8. This was their largest withdrawal since late July, when outflows amounted to $162 million. At the same time, the broader crypto market experienced $464 million in liquidations over the last 24 hours, according to CoinGlass data.
Despite the recent downturn, the Crypto Fear & Greed Index remains in “Greed” territory, with a score of 69. Some analysts are optimistic that upcoming economic data, like the nonfarm payrolls report, could provide a boost and reverse the market’s current trend.
BTC Price Analysis: $90K Next?
Bitcoin’s price continues to fall, now trading below $93,403 after a 2% drop in the last 24 hours. If the cryptocurrency fails to hold above $92,493, a key Fibonacci retracement level, it might drop further to the important $90,000 mark.
The Relative Strength Index (RSI) currently sits at 43, signaling bearish momentum. For Bitcoin to regain strength, it must overcome these challenges and reclaim the $100,000 level.
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Whether this dip is a temporary setback or a sign of deeper troubles, Bitcoin’s next move could set the tone for the crypto market in 2025.
FAQs
Bitcoin is falling due to significant ETF outflows, inflation concerns, bond market volatility, and overall bearish sentiment in the broader crypto market.
Bitcoin’s price could dip to $90K if it fails to hold above $92,493, with the RSI indicating continued bearish momentum in the short term.
Ethereum ETFs also faced significant withdrawals, losing $159.3 million on January 8, marking the largest outflow since July 2024.
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