Bitcoin ETFs See Outflows Amidst US Stock Market Concerns Over Economic Growth

Bitcoin ETFs See Outflows Amidst US Stock Market Concerns Over Economic GrowthUS Bitcoin spot exchange-traded funds (ETFs) have experienced their longest single-day net outflow since the beginning of the year, sparking concerns about risk assets in the US market. Bloomberg News analysts believe that funds are being withdrawn from US risk assets on a broader scale

Bitcoin ETFs See Outflows Amidst US Stock Market Concerns Over Economic Growth

US Bitcoin spot exchange-traded funds (ETFs) have experienced their longest single-day net outflow since the beginning of the year, sparking concerns about risk assets in the US market. Bloomberg News analysts believe that funds are being withdrawn from US risk assets on a broader scale.

Data from Bloomberg shows that investors withdrew nearly $1.2 billion from 12 Bitcoin ETFs in the eight trading days ending September 6. Meanwhile, the US stock market and commodity markets have also been hit by concerns about economic growth. The report points out that Bitcoin's price movements are now increasingly correlated with US stocks.

Bitcoin prices have been under pressure throughout September. Bloomberg data shows that after falling about 7% this month, Bitcoin prices saw a modest rebound, rising about 1% to $54,870 per coin as of 1 p.m. Singapore time on September 9. Sean McNulty, trading director at liquidity provider "Cobbler's Knife Markets," said the slight rebound in Bitcoin could be attributed, in part, to influential market participants covering their short positions.

Caroline Moron, co-founder of digital asset derivatives trading liquidity provider "Orbital Markets," believes that Bitcoin is likely to trade between $53,000 and $57,000 before the release of the US Consumer Price Index data on the 11th of this month. Moron stated that the latest inflation data will guide the market's expectations for the pace of Fed rate cuts.

From the fourth quarter of last year to the first quarter of this year, Bitcoin prices surged significantly, driven by both unmet investment and speculative demand in traditional markets and the historical relaxation of Bitcoin regulation by US regulators, which led to a large influx of US dollar funds into Bitcoin ETF markets.

However, Bitcoin prices have been volatile since the second quarter of this year. The US Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs in January, allowing multiple companies to have their Bitcoin spot ETFs approved for trading, enabling institutional and retail investors to invest in Bitcoin through traditional stock accounts without directly holding the cryptocurrency.

The net outflow from Bitcoin ETFs reflects investors' concerns about the outlook for US economic growth and uncertainty surrounding inflation and Federal Reserve monetary policy. Future Bitcoin price movements will continue to be influenced by macroeconomic conditions, and investors need to closely monitor inflation data and changes in Fed policy.