Outflows Hit Spot Bitcoin ETFs
Spot Bitcoin ETFs have seen a sharp decline in demand this month, with significant outflows recorded on April 26. Grayscale’s Bitcoin Trust (GBTC) led the outflows, with investors withdrawing $139.4 million. Other funds, including Ark Invest, Valkyrie, and Bitwise, also saw notable outflows.
Sell-Offs Pressure Bitcoin Price
The outflows have triggered sell-offs by fund issuers to meet redemptions. This has put downward pressure on Bitcoin’s price, which has experienced significant declines. The bears have taken control, with more Bitcoin longs than shorts being liquidated in the past 24 hours.
Macroeconomic Factors Weigh on BTC
Economic data released on April 25 showed that the US GDP grew at a slower-than-expected rate of 1.6% in the first quarter. This has dampened hopes for rate cuts this year, which has weighed on investors’ minds.
PCE Inflation Data to Be Released
The Personal Consumption Expenditures (PCE) inflation data is expected to be released on April 26. If it comes in higher than expected, it could further increase concerns about the unlikelihood of rate cuts. Interest rates have a significant impact on risk assets like crypto, and a hawkish stance by the Federal Reserve could negatively affect the crypto market.
