The US Bitcoin exchange-traded funds (ETFs) recently posted their longest run of daily net outflows since being listed in January 2024. The Bloomberg show highlighted that investors have pulled upward of $1.2 billion in total from the group of 12 ETFs over the eight days, until 6th September. These underwhelming projections depict the overall slump for stocks and commodities as recessionary tensions intensify.
The looming uncertainty in the crypto industry has caused Bitcoin to suffer terrible losses in September. Mixed US job loss data and deflationary pressure in China are agitating traders and prompting record high sell-offs across global markets. Bitcoin touched $54,000 levels on Friday, climbing by a mere 1% to $54,870 on Monday as markets opened in Singapore. “The small relief rally seems to be driven in part by some prominent influencers closing out their shorts,” said Sean McNulty, director of trading at liquidity provider Arbelos Markets.
When US Bitcoin ETFs were inaugurated in January 2024, market enthusiasm pushed the token to a record high of $73,798 in March. Experts predict that Bitcoin will continue to trade between its recent range of $53,000 and $57,000 as the market braces for US consumer price data on Wednesday. These numbers, coupled with inflation data, will govern the timeline of the Fed’s most anticipated rate cuts. Additionally, Tuesday’s presidential debate between pro-crypto Republican nomine, Donald Trump and Democratic nominee and Vice President Kamala Harris has fueled greater volatility in the crypto market.
