In 1 day, the cost of 671.9 million dollars hit the Bitcoin ETF
Bitcoin exchange-traded funds (ETFs) experienced a massive selloff on December 19, with net outflows of $671.9 million, the largest one-day outflow event of the year.
According to Farside Investors, the biggest outflow came from grayscale GBTC, which poured in $208.6 million, followed by ARK Invest's ARKB, which dropped $108.4 million.
The collapse of these outflows coincided with a fall in the price of Bitcoin (BTC) as it hovered around $96,409 and over $1 billion was withdrawn from the market in 24 hours.
According to Sosovalu data, the total net assets of Bitcoin ETFs as of December 19 were $109.7 billion, wiping out most of the gains that reached $121.7 billion on December 17.
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Market Impact of Bitcoin ETF Investments
Bitcoin ETF withdrawals coincided with BTC's decline, resulting in a net outflow of crypto ETFs totaling $732.4 million, according to CoinMarketCap data.
Bitcoin's dominance stands at 57.4%, despite its December 19 exit and continues to hold the majority of the crypto market share.
One analyst said the continued market decline was likely to be short-lived, saying the market was “completely unprepared for bad news” leading to a sharper decline.
Related: El Salvador buys 11 BTC just one day after reaching agreement with IMF
At the crossroads of American politics and economic conditions
President-elect Donald Trump in the United States is expected to be pro-crypto if he follows through on his promises and helps support innovation in the industry.
This prospect boosted the crypto market as BTC price broke the $107,000 mark and optimism and greed returned to the space.
Still, with US investors expecting a 0.25% rate cut by the US Fed, Chairman Jerome Powell showed a hawkish outlook when he indicated that only two more rate cuts were planned for 2025.
The announcement also saw a fall in the S&P 500, which could lead to the knock-on effect currently seen in crypto as uncertainty replaces greed.
Related: Is Bitcoin Price About to Crash Again?
Buy Deep Thought tops
Crypto analysis firm Santiment said in a December 19 X post that the ratio of crypto discussions around buying the dip in the market has hit its highest level in more than eight months.
While the market is as red as Rudolph's nose, the social dominance score for “buying the dip” on social media platforms is 0.061.
This point was hit on April 12, when the price of BTC dropped below $70,000 to the $67,000 mark, before continuing its decline to $63,000 on April 13.
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