Key takeaways
- US spot Bitcoin ETFs saw one of their largest single-day outflows on November 4.
- Bitcoin price fell below $70,000, which coincided with massive ETF outflows.
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US spot Bitcoin ETFs suffered their second largest single-day outflow since their launch, with investors withdrawing $541 million on November 4, according to data from Farside Investors.
The selloff is just behind the record of $563 million set on May 1, with Fidelity’s FBTC seeing the largest withdrawals at $170 million on Monday, its second largest daily outflow to date.
Ark Invest’s ARKB and Bitwise’s BITB recorded their worst performances since their inception, with capital outflows of $138 million and $80 million respectively. Grayscale’s BTC saw $89 million in withdrawals, while its GBTC fund lost $64 million.
The Franklin Templeton, VanEck and Valkyrie funds collectively saw capital outflows exceeding $38 million.
In contrast, BlackRock’s IBIT reported approximately $38 million in net inflows, while WisdomTree’s BTCW and Invesco’s BTCO reported no inflows.
Spot Bitcoin ETFs ended their seven-day winning streak last Friday as Bitcoin fell below $70,000 after trading near its all-time high earlier this week, according to CoinGecko.
The largest crypto asset extended its decline over the weekend, falling to a low of $67,300. However, it has maintained its gains since the US Fed made an aggressive 50 basis point cut on September 18.
Markets brace for volatility as Election Day and FOMC meeting approach
All eyes are now on tomorrow’s presidential election and the Fed’s policy decision scheduled for Wednesday. Crypto markets are bracing for more volatility ahead of these key events.
Analysts predict increased volatility in Bitcoin as the election approaches. This will likely trigger a “sell the news” reaction, similar to past events where market participants reacted strongly to important news, leading to price fluctuations.
Bitcoin is currently trading at around $67,800, down 2% over the past 24 hours, according to CoinGecko data. The total crypto market cap also fell by almost 3% to $2.3 trillion.
As Bitcoin sneezes, the broader crypto market catches a cold. Ethereum and Solana fell more than 3% each, while Toncoin and Chainlink fell 5%, respectively.
Historically, Bitcoin has seen notable price increases following the US elections. For example, after the 2012, 2016, and 2020 elections, the price of Bitcoin saw substantial gains in the year following each election cycle. This trend suggests that Bitcoin could rally after the election, regardless of which candidate wins.
However, short-term price developments may depend on who wins the election. Bernstein analysts suggest that a Trump victory could propel the price of Bitcoin to $90,000. On the other hand, if Harris wins, Bitcoin could fall to $50,000.
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