19h00 ▪
3
min of reading ▪ by
Bitcoin ETFs experienced significant net outflows of more than $200 million! As uncertainty surrounding inflation data in the United States gripped the market. Investors are reassessing their positions in risk assets, including Bitcoin ETFs, as inflation fears rise.
US Inflation: Fear Causes Bitcoin ETF Hemorrhage!
Daily net outflows of $200.31 million were recorded by U.S. spot Bitcoin ETFs on June 11! The Grayscale Bitcoin Trust (GBTC) and the ARK 21Shares Bitcoin ETF (ARKB) being the most affected, with outflows of $121 million and $56 million respectively. Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) recorded no flows during the same period.
This trend is notable, as these ETFs had experienced positive net inflows since May 13. However, outflows began to occur from June 10, as market participants anticipated the release of the U.S. Consumer Price Index (CPI) data for May.
Upcoming Perspectives on Inflation
Jesse Cohen, global market analyst, highlighted the increased market volatility surrounding the upcoming CPI report. He indicated that a cooler-than-expected CPI report could extend the ongoing market rally. However: “a surprisingly strong inflation reading could trigger market volatility, as it could delay expectations of rate cuts and raise concerns about inflationary pressures,” he added.
The research firm The Kobeissi Letter noted divided expectations regarding the CPI data. It highlights that while large banks expect CPI inflation to be 3.4%, prediction markets indicate a 17% chance of inflation above 3.4% and a 41% chance below 3.4%.
In conclusion, the net outflows from spot Bitcoin ETFs reflect global economic uncertainty. Upcoming inflation data could influence market trends, highlighting the importance of investor vigilance in the face of fluctuating economic indicators.
Maximize your Cointribune experience with our ‘Read to Earn’ program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.
Click here to join ‘Read to Earn’ and turn your passion for crypto into rewards!
Le monde évolue et l’adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m’intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l’optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
This news is republished from another source.
