Key takeout
- The Bitcoin ETF recorded a record $935 million net outflow amid a sale driven by macroeconomic concerns.
- The slump in the crypto market is driven by risk aversion from tax threats and inflation concerns.
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The US spot Bitcoin ETF recorded a net outflow of around $935 million on Tuesday, extending its losses up to this week to around $1.5 billion.
A massive withdrawal continued during the sale of the massive crypto market, and investors retreated from risky assets in addressing rising macroeconomic concerns after President Trump's tariff threat.
According to data from Farside Investors and Trader T, Fidelity's FBTC led the escape with a spill of about $344 million, followed by BlackRock's IBIT with almost $162 million redemption.
Meanwhile, Bitwise's BITB and Grayscale's BTC each recorded net outflows of over $85 million.
Franklin Templeton's EZBC lost $74 million, while Grayscale's GBTC and Investco's BTCO fell $66 million and $62 million, respectively.
Competing funds managed by Valkyrie, Wisdomtree and Vaneck also reported net flow.
The heavy leak overturned the previous record set on December 19, when a group of Spot Bitcoin ETFs saw a withdrawal of nearly $672 million after Bitcoin fell below $97,000.
The withdrawal surpassed the previous record of $672 million set on December 19, marking the ETF group's sixth consecutive day of outflow.
Bitcoin touched on $86,000 today, the lowest level since November, and is currently down 7% at $88,000 per TradingView. Crypto's total market capitalization has declined by 3.5% over the past 24 hours.
BTC is currently down 7% to around $88,900 over the past seven days. Crypto's overall market capitalization has plummeted 3.5% in the last 24 hours, with Altcoins struggling to recover from previous losses.
Crypto Briefing reported that a sharp decline across all assets led to a leveraged liquidation of $1.6 billion on Monday.
Former Bitmex CEO Arthur Hayes warned of the possibility of a market slump as hedge funds rewind their underlying transactions, including Bitcoin ETFs.
“Many $ibit holders are hedge funds that earned long ETF short CME futures to get a greater yield than where they fund, Hayes said. If prices fell, they warned that “these funds will sell $IBIT and buy back CME futures.”
Market turmoil continues to reinvigorate President Trump's tariffs on goods from Mexico and Canada.
The Crypto Fear and Greed Index, a measure of the crypto market's sentiment, fell from 25 to 21, remaining in the “extreme fear zone.”
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