Bitcoin (BTC) experienced significant volatility on January 8, as investors pulled nearly $570 million from US-listed spot Bitcoin exchange-traded funds (ETFs). This mass withdrawal came as Bitcoin’s price fell below the psychological $100,000 threshold, dipping to $92,500. According to Farside data, the outflows from these ETFs amounted to $569.1 million, marking the second-highest daily net outflow since the ETFs’ launch, just shy of the $671.9 million seen on December 19.
The largest contributor to these outflows was the Fidelity Wise Origin Bitcoin Fund, which accounted for 45% of the total outflow, or $258.7 million. This marked its highest-ever single-day withdrawal, indicating a significant shift in investor sentiment as Bitcoin’s price dipped.
The dip in Bitcoin’s price triggered a wave of liquidations across the broader crypto market. CoinGlass data revealed that around $521 million was liquidated in the past 24 hours, with concerns over the US Federal Reserve’s tightening monetary policy for 2025 playing a key role. Ryan Lee, Chief Analyst at Bitget Research, attributed the price drop to strong US economic data signaling potential interest rate hikes.
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Despite these sharp sell-offs, the overall market sentiment remains in the “Greed” zone, according to the Crypto Fear & Greed Index, which currently stands at 69, down from 78 just 30 days ago. This suggests that while market participants are feeling some caution, bullish sentiment still prevails.
Bitcoin’s start to 2025 has been marked by volatility, leaving traders uncertain about its near-term direction. Crypto analyst Daan Crypto Trades commented on the situation, stating that while Bitcoin briefly tested a high of $102,500 earlier this month, it quickly retraced to $92,500. He described the year’s beginning as “undecisive,” suggesting that it’s too early to draw definitive conclusions.
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As Bitcoin grapples with these market shifts, investors remain on edge, navigating a landscape shaped by economic uncertainties and Federal Reserve policies.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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