Bitcoin’s (BTC) price plunged below $57,000 over the past 24 hours as Bitcoin spot exchange-traded funds (ETFs) bled assets under management.
According to CoinMarketCap data Bitcoin is trading under $53,400 at the time of writing after losing 4.8% over the last 24 hours. Trading volume has also seen a significant uptick, with nearly $45 billion changing hands over the last 24 hours.
Record outflows hit Bitcoin ETF market
Farside Investors data shows that on Sept. 5 $211.1 million worth of liquidity left the United States-based Bitcoin spot ETF market. Curiously, most of that — $149.5 million — bled out of just the Fidelity Wise Origin Bitcoin Fund (FBTC).
This data makes Sept. 5 the second-highest day for recorded outflows for United States-based BTC spot ETFs. The biggest outflow day was just Tuesday, Sept. 3, with $287.8 million leaving the market, $162.3 million of that from FBTC alone.
Market participants anticipate a Federal Reserve interest rate cut, taking its potential effects into account in their trading activity. The CME FedWatch tool shows a 59 percent likelihood of a 25 basis point cut in September. The same tool also gives a 50 basis point cut a 41 percent chance.
The market has not been gentle with Ethereum (ETH) over the last trading day, either. CoinMarketCap data shows Ethereum’s price at just over $2,200 as of the time of writing, losing almost 7 percent of its value over the past 24 hours.
CoinMarketCap global charts also show that cryptocurrency’s total market capitalization has fallen from $1.97 trillion down to $1.89 trillion within the last 24 hours to press time. This is equivalent to $80 billion leaving the market in the last trading day.
The Crypto Fear & Greed Index, a multifactorial measure of crypto market sentiment, currently stands at 22, indicating that extreme fear has gripped the crypto market. In most cases, such a low score would suggest that the market is oversold — but it is far from a guarantee that the market will soon start to rally.
Featured image via Dall-E 3
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