Investors in United States-listed spot Bitcoin exchange-traded funds (ETFs) withdrew close to $570 million on January 8, coinciding with Bitcoin ’s price dipping below the significant psychological level of $100,000. This mass withdrawal resulted in one of the highest daily net outflows since the ETFs were launched, with $569.08 million exiting during that period. Notably, the Fidelity Wise Origin Bitcoin Fund accounted for about 45% of the outflows, totaling $258.7 million, marking its largest single-day withdrawal.
In tandem with these withdrawals, the crypto market experienced substantial liquidations, with positions valued at approximately $521 million liquidated in just 24 hours. The sell-off was largely attributed to mounting concerns over the US Federal Reserve’s potential tightening of monetary policy in 2025, a situation that unsettled many investors. Bitcoin ’s price briefly fell to $92,500, reflecting the broader market anxieties surrounding interest rate hikes, driven by positive US economic indicators.
As of the latest data, Bitcoin was trading at approximately $94,401. Despite the significant volatility and liquidation, market sentiment remained relatively strong. The Crypto Fear & Greed Index indicated a “Greed” score of 69, although this was a decline from the “Extreme Greed” score of 78 recorded a month earlier.
Despite the fluctuations in Bitcoin ’s price, some traders contend that it is premature to make any definitive conclusion about the market’s direction. Observations from recent trading activity suggest that while Bitcoin reached a temporary peak earlier in January, it also established a new monthly low shortly thereafter. As a result, the start of the year is being characterized as uncertain, with traders expressing caution about interpreting the current market dynamics.
