Investors dump Bitcoin ETFs en masse: $ 1.4 billion away in 4 days

Investors seem to be temporarily losing confidence in the spot Bitcoin ETFs (BTC) now that the fear of stagflation in the United States is increasing. For the fourth trading day in a row, a lot of money was pulled out of the funds yesterday, which underlines the unrest in the financial markets.

196 million dollars away from Bitcoin ETFs

According to data from Farside, a total of 196 million dollars in capital from the American spot Bitcoin ETFs was obtained yesterday. Fidelity’s FBTC and BlackRock’s Ibit together were good for most of that outflow.

This makes it the fourth trading day in a row that investors get money from these funds. On Monday it was even an outflow of 323.5 million dollars. Last Friday that was even more robust, with a loss of no less than 812.3 million dollars, an outflow that we have not seen since February. Also on Thursday, $ 114 million was already removed from the ETFs. The total outflow over four days therefore amounts to more than 1.4 billion dollars.

The outflows come at the moment that new figures about the American services sector investors again warn about the ghost image of internship, a period of high inflation and low growth. The Nasdaq lost 0.7 percent yesterday and at the same time the Bitcoin rate fell by more than 1 percent to $ 112,750 yesterday, and then recovered lightly to $ 114,200.

According to the LondonCryptoclub newsletter, the market is trapped between inflation and delaying growth. “Jobs in the service sector are declining, new orders and activity hardly grow, and prices rise.” “Stagflation is of course the most poisonous combination for risky assets, especially if it hinders the FED to reduce interest rates to absorb weakening growth,” wrote the founders on X.

Markt is counting on three interest rates

Yet some analysts expect the Federal Reserve to have room to lower the interest. Last Friday’s weak labor market figures have raised the expectations for interest rates. According to Bloomberg, the market now even expects three interest rates this year, good for a total of 0.75 percentage points.

Interesting is that Ethereum saw ETFs (ETH) inflow. In total yesterday it was about $ 73.22 million. That cover follows new guidelines from the American regulator SEC. This shows that receiving tokens through strike, under certain conditions, is not categorized as an effect.