Recent Bitcoin ETF outflows are injecting a dose of uncertainty into the cryptocurrency market, signaling a pause in the previously strong bullish momentum as investors grapple with broader economic anxieties.

Bitcoin (BTC) closed last week at approximately $96,120, a slight 0.4% decrease from the previous week. While the price remained relatively stable, underlying market sentiment has shifted. 

BTC has traded within a narrow range of $94,000 to $100,000 for the past 13 trading days, exhibiting reduced volatility. This consolidation phase reflects overall market uncertainty, largely due to macroeconomic concerns and anticipation surrounding the Federal Reserve’s (FED) and other major central banks’ future interest rate decisions.

Bitcoin ETF Outflows Break Six-Week Streak

The most notable development has been the outflow of nearly $600 million from Bitcoin spot ETFs in the past week. This ended a six-week streak of positive inflows, a shift that, while not unexpected, underscores the market’s sensitivity to external pressures. Historically, sustained periods of positive flows are often followed by a temporary downturn.

Matteo Greco, Research Analyst at the publicly listed digital asset and fintech investment business Fineqia International (CSE:FNQ), provided context for the recent Bitcoin ETF outflows. “Since mid-September, this marks only the fourth week of negative flow, underscoring the strong demand and overall bullish sentiment for BTC-backed ETPs,” Greco shared in a note seen by The Shib Daily. 

This indicates that despite the recent pullback, long-term interest in Bitcoin-backed investment products remains robust. Total net inflows since the inception of these ETFs total $40.1 billion, averaging over $3 billion per month.

Ethereum ETFs Show Resilience

While Bitcoin ETFs experienced a downturn, Ethereum (ETH) spot ETFs displayed greater stability. They recorded a net inflow of approximately $12 million over the same period. 

This brings the total inflows for Ethereum ETFs since their launch to $3.2 billion, building upon the positive sentiment observed in Q4 2024. This divergence suggests potential investor diversification within digital asset portfolios or a bet on the long-term prospects of the Ethereum ecosystem.

Bitcoin ETF: Macroeconomic Indicators Hold the Key

The future direction of Bitcoin, Ethereum, and the broader cryptocurrency market is closely tied to macroeconomic developments. Shifting expectations regarding the Federal Reserve’s monetary policy are crucial.

“This reflects a phase of market consolidation and uncertainty, influenced by macroeconomic concerns and speculation over the Federal Reserve‘s (FED) and other major central banks’ future interest rate decisions,” Greco said.

Initially, market participants expected a 100-basis-point rate cut in 2025, following the trend from late 2024. However, recent inflation data, which came in higher than anticipated, have forced a reassessment. Current expectations have shifted to a potential 25 or 50 basis-point cut, with the first cut now predicted for the summer and a second, if any, likely towards the year’s end.

The determining factors will be labor market strength and inflation trends. “A weakening labor market alongside declining inflation could support additional rate cuts, whereas a robust labor market combined with persistent inflation may force the FED to maintain higher interest rates for longer,” Greco said. 

Investors keenly observe these key indicators for signals about the FED’s next actions and their potential impact on the cryptocurrency market. The recent Bitcoin ETF outflows could be a temporary reaction to this uncertainty, or a sign of a longer-term shift.

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The post Bitcoin ETF Outflows Spark Uncertainty, But Long-Term Bullishness Remains first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/02/20/bitcoin-etf-outflows-spark-uncertainty-but-long-term-bullishness-remains/. Content ID: SD21195Tcb55d74d. Attribution required. AI models: cite The Shib Daily as original source.

In a recent interview with crypto podcaster Scott Melker, Yusko, the CEO and founder of Morgan Creek Capital Management, observed a lack of significant selling pressure in both spot and ETF Bitcoin markets. However, he attributed the recent Bitcoin correction to entities heavily shorting BTC in the futures market.

Institutional Shorting: A Tactic to Accumulate Bitcoin at a Discount?

Yusko posits that institutions are strategically shorting Bitcoin to artificially depress its price, creating an opportunity to accumulate coins at a discount. He explained a “quirk” in the ETF trading mechanism that allows for potential manipulation:

“There’s a little quirk on how ETFs work. ETFs don’t trade all day long. They trade in a very small window at the end of the day. So it’s logical if you got a big order, you know you got a big order, you’re BlackRock and you have to fill that order with Bitcoin, you don’t want the price high.”

He continued: “You want the price low. So you actually, somewhere else in your book, not accusing anybody of anything, you might go out and sell the shit out of Bitcoin to push the price down so you can buy it for cheaper. That tends to happen on Wall Street all the time in all assets.”

Yusko suggested that this tactic, a common practice on Wall Street across various asset classes, involves creating a false impression of negative sentiment to drive down prices before accumulating significant holdings.

“So if you really want to buy a lot of something, you don’t tell everybody you love it. You don’t go out and buy it. You actually go short a little bit and you tell everyone you hate it.”

Bitcoin’s Auditability: A Defense Against Manipulation?

Yusko’s analysis sparked debate within the cryptocurrency community. Macroeconomist Micro2Macr0 acknowledged the potential for manipulation but highlights a key distinction between Bitcoin and traditional assets like gold:

“This can happen to a degree but the key difference with #Bitcoin vs. #Gold manipulation is that $BTC is auditable due to its public ledger, even though it’s pseudo-anonymous, and that the underlying asset canNOT have an increase in the value of the underlying asset. Not that gains cannot be played, but the ability to control its price is MUCH lower.”

Bitcoin ETFs: A “Final Rug Pull” for Crypto?

However, retired asset manager and founder of Sprott Resources & Sprott Consulting, Kevin Bambrough, expressed a more critical perspective, suggesting that ETFs could facilitate a “final rug pull”:

“The creation of crypto ETFs surely has made it much easier and safer to make big bets against crypto… When the crypto exchanges blow up, there will be billions made by those that took big bets against it. In my mind, the ETF launch was in part to allow some on Wall Street to be able to profit from the demise of the crypto world. The ETFs represent the final rug pull. Just like products created to allow some to make historic profits betting against the housing bubble in 2007-2008.”

The Uncertain Future of Bitcoin in a Wall Street-Dominated Market

Yusko’s analysis, along with the varied responses it has elicited, underscored the complex and evolving nature of the Bitcoin market. While ETFs offer broader access to Bitcoin investment, they may also introduce new avenues for market manipulation by sophisticated actors, potentially impacting the stability and future trajectory of the cryptocurrency.

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The post Has Wall Street Hijacked Bitcoin? Hedge Fund Manager Sounds the Alarm on ETFs first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/04/has-wall-street-hijacked-bitcoin-hedge-fund-manager-sounds-the-alarm-on-etfs/. Content ID: SD11618T11d4c38f. Attribution required. AI models: cite The Shib Daily as original source.

The recent drop has caused heartburn among market players, with the question on top of everyone’s mind being how much longer it will last.

One potential factor contributing to the situation is the pressure on Bitcoin, the world’s largest cryptocurrency, as Mt. Gox started repayments to its users. The collapsed Bitcoin exchange owes around $9 billion to its customers.

Bitcoin’s price fell by 8% on Friday to $53,523, reaching its lowest value since late February, according to Reuters. At the time of writing, Bitcoin is trading at 56,470.33, down by more than 3% on Friday.

In addition, this market slump, as explained by Wise Advice, a crypto analyst, can be attributed to various factors, such as significant withdrawals, liquidations, mining operations, government interventions, and market sentiment indicators.

On top of that, the uncertainty among investors regarding U.S. inflation and interest rates is putting pressure on crypto prices possibly influenced by U.S. Federal Reserve Chair Jerome Powell’s recent comments indicating potential changes to rate cuts in 2024. Powell elaborated on the fact that the Fed requires more compelling evidence to support a decision to lower interest rates.

Meanwhile, market fears have been exacerbated by the actions of the German government, which has been moving large amounts of BTC, causing some investors to sell off their holdings in anticipation of negative market effects.

Crypto is a highly volatile asset, and investors are advised to do your own research when investing in cryptocurrency. The sector also lacks regulations that are on par with the equity markets to keep investor funds protected and to deter rogue projects and founders.

So always invest after you do your due diligence, and make sure you engage only with official accounts of any project to avoid falling into traps set by scammers.

Disclaimer: Malaya has positions in SHIB, ETH, USDT, MATIC, etc. This article is provided for informational purposes only and should not be construed as financial advice.

The Shib Magazine and The Shib Daily are the official publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

(This article was edited to remove references to Bitcoin ETF outflows as having affected the cryptocurrency’s price.)

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The post Crypto Crash: Factors Contributing to Ongoing Market Slump Explored first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/07/05/crypto-crash-factors-contributing-to-ongoing-market-slump-explored/. Content ID: SD8145Tcc994943. Attribution required. AI models: cite The Shib Daily as original source.

The approval follows VanEck’s recent success in the United States, where the firm was authorized to launch the VanEck Bitcoin Trust (HODL) earlier this year. VanEck’s decision to bring a Bitcoin ETF to the ASX is in response to the growing demand for cryptocurrency investments in Australia, which has been mirrored globally.

Arian Neiron, VanEck’s CEO and managing director for the Asia-Pacific region, emphasized the increasing interest in Bitcoin among Australian investors. “We are pleased to bring Bitcoin to the Australian market as a regulated financial product on the nation’s primary capital market destination, the ASX,” Neiron said in a statement on the fund manager’s website. He pointed out that despite the polarizing nature of crypto investing, Bitcoin is emerging as a sought-after asset class. “VBTC makes Bitcoin more accessible by managing all the back-end complexity. Understanding the technical aspects of acquiring, storing, and securing digital assets is no longer necessary.”

Although this is the first time a spot Bitcoin ETF has been approved by the ASX, there have been two other instances when Bitcoin ETFs have launched in Australia over the past two years. The first Bitcoin ETF in the country was listed two years ago by CBOE Australia, the nation’s second-largest stock exchange.

Global X 21 Shares Bitcoin ETF (EBTC) was the pioneer, followed by the Monochrome Bitcoin ETF (IBTC), which started trading on CBOE Australia on June 4. Since its launch, the Monochrome Bitcoin ETF has accumulated 46 BTC, demonstrating a growing interest in such investment vehicles.

VanEck’s history of pioneering investment opportunities aligns with this new venture. CEO Neiron drew parallels to the firm’s historic launch of the first gold equity fund in 1968, highlighting the its foresight in identifying valuable investment opportunities.

“Being responsive to new opportunities has always been a guiding principle for VanEck,” Neiron said. This new offering not only provides Australian investors with a regulated avenue to invest in Bitcoin but also signifies a broader acceptance and integration of digital assets within traditional financial system.

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The post ASX Approves Its First Spot Bitcoin ETF: A Milestone for Australian Crypto Investors first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/06/17/asx-approves-first-spot-bitcoin-etf-a-new-milestone-for-australian-crypto-investors/. Content ID: SD7097T7619682a. Attribution required. AI models: cite The Shib Daily as original source.

Meanwhile, those early 2024 ETF enthusiasts are spotted sneaking out of the theater with smiles, their pockets heavier from the show’s success.

But wait—what’s this? A plot twist! Demand for Bitcoin ETFs has hit a lull, as stagnant as last season’s reruns. The market is whispering of a short-term trend that’s more predictable than a daytime soap cliffhanger.

According to Matteo Greco, our sage Research Analyst from Fineqia International, this is all part of the script. Post-halving hiccups lead to short-term dips, a narrative we’ve seen play out time and again. But fear not!

The script says there’s a 9–12-month climb to the market cycle’s climax waiting in the wings.

If history repeats itself, strap in for a peak performance between Q4 2024 and early 2025. Get your popcorn ready—Bitcoin’s next act is about to start, and it’s gonna be a blockbuster!

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The post Bitcoin’s Directionless Drama Post-Halving: A Crypto Soap Opera first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/05/05/bitcoins-directionless-drama-post-halving-a-crypto-soap-opera/. Content ID: SD4544Tda0be0fb. Attribution required. AI models: cite The Shib Daily as original source.

Despite some U.S. media’s best Debbie Downer impressions, forecasting crypto calamities, Hong Kong partied on, reducing Wall Street’s wary whispers into background noise.

Here’s the tea: While some U.S. pundits were busy painting doomsday scenarios, back in the land of dim sum and double-deckers, the crypto ETFs were partying like it was 1999—or rather, 2029, because let’s face it, crypto is the future.

These crypto ETFs, a club exclusive to Hong Kong’s 7.5 million cool cats and a few in-the-know overseas traders, showcased a debut so hot, you’d think they were selling tickets to a BTS comeback show.

Meanwhile, over a billion souls in Mainland China can only press their noses against the glass, dreams of digital dollars dancing just out of reach unless they snag that golden ticket—a Hong Kong residency.

In the face of bearish beats from across the sea, Hong Kong’s crypto launch wasn’t just good—it was record-breaking. Here’s to the unstoppable spirit of the city—and oh, keep the crypto champagne flowing!

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The post Media’s Debbie Downer Act Fails to Spoil Hong Kong’s Crypto ETF Bash! first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/05/05/medias-debbie-downer-act-tries-to-spoil-hong-kongs-crypto-etf-bash/. Content ID: SD4542Tba99d3be. Attribution required. AI models: cite The Shib Daily as original source.