Bitcoin ETFs Shed $630M in Largest Daily Exit Since January
U.S. spot Bitcoin ETFs saw $630.4 million in outflows on Wednesday, marking the largest single-day withdrawal in over three months. The outflow followed higher-than-expected U.S. inflation data, with April CPI at 3.8% and PPI at 6%, raising fears of further Federal Reserve rate hikes. BlackRock’s IBIT, ARK Invest’s ARKB, Fidelity’s FBTC, and Bitwise’s BITB accounted for all net outflows. This development ended a five-week inflow streak and mirrored broader risk aversion and growing bearish sentiment in derivatives markets. Analysts highlight that continued outflows and the market’s direction now depend on energy prices and potential geopolitical disruptions, such as those around the Strait of Hormuz. While the recent sell-off has led to cautious near-term sentiment, prediction markets still favor the chance of Bitcoin rising toward $84,000 rather than falling to $55,000, although only a minority expects it to close above $80,000 by week’s end. Bitcoin currently trades down 1.6% over the past 24 hours, at $79,540.
