Cryptocurrencies are extending declines at the end of the week, which has to do with the strength of the US dollar and the massive declines seen in stock indices. An additional factor putting pressure on the cryptocurrency market at the end of the week is the net outflow of funds from spot ETFs. Some of the “trend following” hedge funds are likely to make profits through this, or short-term trading strategies involving short selling, in the face of the poor performance of ETFs, which are often interpreted as the main “determinant” of cryptocurrencies. investor sentiment. Additionally, since the halving, we have seen stronger BTC sales among miners, who receive lower mining rewards; Given the lower flows to ETFs, these are not being mitigated with new capital.
ETF funds are selling Bitcoins
Yesterday, capital flowed out of US Bitcoin ETFs again; The sale amounted to more than 200 million dollars. For the first time in dozens of sessions, capital flowed out of the “low-cost” Fidelity Wise Origin BTC vehicle.
Source: Bloomberg Financial LP, XTB Research
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