Bitcoin investors exit spot ETFs at near-record levels as BTC slumps 2.3%
Bitcoin investors withdrew nearly $570 million from US spot Bitcoin ETFs on Jan. 8, as BTC dipped below the critical $100,000 level, triggering significant liquidations.
Record outflows as BTC slumps
Spot Bitcoin ETFs experienced $569.1 million in outflows, the second-largest single-day net outflow since their inception. Fidelity Wise Origin Bitcoin Fund led the withdrawals, accounting for 45% at $258.7 million, its highest-ever single-day outflow, according to Farside data.
Liquidations and market sentiment
The crypto market saw $521 million in liquidations within 24 hours as Bitcoin briefly dropped to $92,500. Analysts, including Ryan Lee of Bitget Research, attributed the dip to fears of tighter US Federal Reserve policies driven by strong economic data suggesting potential interest rate hikes.
Despite the decline, the Crypto Fear & Greed Index remains in the “Greed” zone at 69, though down from last month’s “Extreme Greed” score of 78. Bitcoin traded at $94,401 at the time of writing, per CoinMarketCap data.
A volatile start to 2025
Traders caution against drawing conclusions from Bitcoin’s choppy price action early in the year. Daan Crypto Trades highlighted in a Jan. 9 post that while BTC briefly hit $102,500, it set a monthly low at $92,500 on Jan. 8.
“This year has started undecisively,” Daan commented, reflecting on Bitcoin’s price fluctuations.