Key Takeaways
- • US spot Bitcoin ETFs recorded $484.9 million in net outflows on Wednesday, their largest since June 25, according to Farside data.
- • BlackRock's IBIT led the selling with $207.7 million in outflows, its largest since July, after having offset withdrawals from rival funds over the previous five sessions.
- • Bitcoin traded at $82,019 as of 9:45 a.m. ET Thursday, down 1.2% over 24 hours, after dipping to $81,732, below its Sept. 28 low.
- • Bitfinex says a recovery requires holding $81,300 and warns that thin breakeven support below current levels could let price fall quickly, while FxPro says a forced exit of leveraged buyers could push Bitcoin toward $76,000.
- • Rising Treasury yields and Federal Reserve minutes signaling a likely further rate increase by year-end drove the risk-off move.
Summary
US spot Bitcoin ETFs posted $484.9 million in net outflows on Wednesday, the largest daily withdrawal since June 25, according to Farside data. BlackRock's iShares Bitcoin Trust (IBIT) accounted for $207.7 million of that total. The fund had offset net withdrawals from rival products over the previous five sessions, so its reversal removed the main source of buying support for the asset class.
Bitcoin traded at $82,019 at 9:45 a.m. ET on Thursday, down 1.2% over 24 hours, after falling to $81,732. That low breached the September 28 low, a level that Bitfinex's research team said few holders bought at, leaving little support beneath current prices. "With fewer breakeven defense clusters in that zone to act as support, price could slice through it quickly," the exchange wrote on Wednesday. Bitfinex ties a recovery to renewed fund buying and a hold of $81,300, while FxPro warned that a forced exit of leveraged buyers could send Bitcoin toward $76,000.
Macroeconomic conditions drove the selloff. Treasury yields held near multi-decade highs, and oil prices rose on Tuesday and again on Thursday. On Wednesday afternoon, the Federal Reserve released the minutes of its September meeting, which ended with a rate increase. Most participants "assessed that another increase in the target range for the federal funds rate would likely be appropriate by year end," the minutes show. Elevated real yields raise the opportunity cost of holding non-yielding assets such as Bitcoin, and that pressure has weighed on flows into spot products.
Bitcoin traded at $82,019 at 9:45 a.m. ET on Thursday, down 1.2% over 24 hours, after falling to $81,732. That low breached the September 28 low, a level that Bitfinex's research team said few holders bought at, leaving little support beneath current prices. "With fewer breakeven defense clusters in that zone to act as support, price could slice through it quickly," the exchange wrote on Wednesday. Bitfinex ties a recovery to renewed fund buying and a hold of $81,300, while FxPro warned that a forced exit of leveraged buyers could send Bitcoin toward $76,000.
Macroeconomic conditions drove the selloff. Treasury yields held near multi-decade highs, and oil prices rose on Tuesday and again on Thursday. On Wednesday afternoon, the Federal Reserve released the minutes of its September meeting, which ended with a rate increase. Most participants "assessed that another increase in the target range for the federal funds rate would likely be appropriate by year end," the minutes show. Elevated real yields raise the opportunity cost of holding non-yielding assets such as Bitcoin, and that pressure has weighed on flows into spot products.
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