the price fell due to historic money outflow
Bitcoin (BTC) exchange-traded funds (ETFs) in the United States recorded unprecedented capital outflows yesterday. They ended the day with withdrawals of 680 million dollars (USD).
This new record of outputs in one day in these instruments exceeds the one it had until then by 25%which had been USD 541 million almost two months ago.
Yesterday’s negative performance of bitcoin ETFs breaks the positive streak they were having. Precisely, they had 15 consecutive days of capital inflows, which contributed to the price of the currency remaining above USD 100,000.
With the exits from the ETFs, which can be seen below, the price of bitcoin declined from such a level, a decline that worsened today. At the moment, it is around USD 93,000.
The price decrease can be seen in the following graph:
Political situation in the United States affects bitcoin
The United States House of Representatives rejection yesterday a temporary funding plan backed by President-elect Donald Trump and his advisor, Elon Musk. It pressured lawmakers to abandon an earlier bipartisan deal and add a provision waiving or raising the federal debt limit.
In addition to bitcoin, cryptocurrencies and stocks of the economic powerhouse reacted downward to the decision. With such a movement, there is less appetite for risk, caused by the low support in Congress for the president-elect.
In this sense, the markets, which were trending towards new all-time high prices since Trump won the elections, continue to appear sensitive to US policy.
Also, the Fed’s announcement that it will go slowly with interest rate cuts has a negative impact on the price of bitcoin and other financial assets.
No less important was the statement by the president of that organization, Jerome Powell, who assured that they are not authorized to “store” bitcoin. Will Trump then be able to create his promised “strategic reserve in bitcoin”? Given the doubts, the price of BTC has gone down.
Despite this, as CriptoNoticias reported, On-chain data from the analysis company Glassnode indicates that this bullish cycle of bitcoin is not over yet. The argument behind it is that the proportion of bitcoin held by new investors is not yet at the highs seen at the end of each bull market.