Bitcoin ETFs Face $174 Million Outflow Amid Mt. Gox Repayment Confirmation
Institutional investors are consistently selling off U.S. spot Bitcoin ETFs. Over the past five trading sessions, Bitcoin ETFs registered net outflows totaling $714 million, according to data from SoSovalue. Notably, there was a net outflow of $174 million just yesterday, following news that Mt. Gox creditors will start receiving repayments next week. Grayscale’s GBTC fund reported the highest outflow of $90 million, and Fidelity’s FBTC fund saw an outflow of $35 million.
Bitcoin’s price briefly dipped below the $60,000 threshold but then recovered to $60,770, as per CoinGecko. Despite the U.S. markets being closed on June 19 for Juneteenth, the total outflow from Bitcoin ETFs last week was a significant $544 million across four trading sessions. Additionally, crypto liquidations across all assets amounted to $330 million in the last 24 hours, driven by the Mt. Gox news.
The continuous negative news trend is worrisome for investors, compounded by the Federal Reserve’s hawkish stance. With Mt. Gox creditors set to receive around $9 billion in Bitcoin next week, there is looming concern of a potential market impact if these creditors choose to sell their holdings.
Miners Under Pressure
Bitcoin miners are also feeling the squeeze, selling their BTC holdings as the network's hash rate has decreased by 6% from its April peak, now at its lowest since March 17. “Bitcoin miners remain extremely underpaid as prices have declined, and transaction fees have plummeted,” stated Julio Moreno, Head of Research at CryptoQuant, on Twitter. Miners are offloading their BTC to fund operations or enhance their mining hardware.
Moreno mentioned that Bitcoin’s price support is currently around the $56,000 mark. Any drop below this level could trigger a “major correction.” In a previous tweet, Moreno attributed the current price action to a lack of interest from traders, institutional investors, whales, and other market players.
For the everyday reader:
- What’s happening? Big investors are pulling their money out of U.S. Bitcoin trusts because of a big news event with an old exchange called Mt. Gox.
- Why does it matter? This might make Bitcoin prices fall if many people start selling at the same time.
- Additional concern: Bitcoin miners (who create new Bitcoins) are also selling more because it’s getting harder to make money mining Bitcoin.
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