Record Outflows from US Bitcoin ETFs as Investors React to Fed Decision
US Bitcoin ETFs Experience Massive Outflow
US spot Bitcoin exchange-traded funds (ETFs) saw their largest single-day outflow on May 1, with investors withdrawing over half a billion dollars ($563.7m) from the 11 publicly traded American Bitcoin ETFs. This significant move came after the Federal Reserve decided to maintain interest rates between 5.25-5.50%, leading to concerns among investors.
Impact on Bitcoin Price
Following the Fed’s decision, Bitcoin experienced a brief rally from $56,620 to $59,430. However, the bounce was short-lived, with Bitcoin dropping back to $57,300. Currently, Bitcoin is valued at $57,800. In contrast, America’s major stock indexes, including the S&P 500, Nasdaq Composite, and Dow, performed well on the same day.
Market Uncertainty and Regulatory Concerns
The recent outflows from US Bitcoin ETFs coincide with a period of regulatory uncertainty and doubts about the long-term sustainability of digital assets. The disappointing launch of Asia’s first spot bitcoin and ether ETFs in Hong Kong also contributed to the negative sentiment in the crypto market. As institutional investors reassess their exposure to Bitcoin, market volatility is expected to persist in the near future.
