The cryptocurrency market just experienced a terrible day as Bitcoin ETFs in the US lost 430 million USD in just 24 hours. The investor exodus has led giants like Fidelity, BlackRock, and ARK Invest to witness strong capital outflows, shaking confidence in Bitcoin amidst rising economic instability.
The Panic Has Landed: Who Is Pulling Money Out of Bitcoin ETFs?
On Monday, as US stock indices plummeted, the wave of withdrawals from Bitcoin ETFs began to intensify. Data from Coinglass shows:
ARK 21Shares Bitcoin ETF from #ArkInvest topped the list with 147 million USD withdrawn.
Fidelity reported a withdrawal of 135 million USD, according to a report from JPMorgan.
BlackRock IBIT ETF was also not spared from the impact as investors sold 90 million USD in shares.
Ethereum ETFs also share the same fate, losing 34 million USD on products from Fidelity, Grayscale, and Bitwise.
Notably, Bitcoin ETFs have been a favorite investment channel for the Baby Boomer generation, but the market panic has shaken their confidence.
The Reasons Behind the Panic?
Analysts believe this record capital outflow is related to macroeconomic fluctuations, particularly the volatile tariff policy of President Donald Trump.
Trump's unclear trade war has undermined confidence in the US economy, leading to selling pressure in both traditional and crypto markets.
Just a few days ago, $TRUMP held a conference on crypto, where he and prominent figures like Michael Saylor praised Bitcoin as a strategic asset for the US. However, this optimism is not enough to counter the fear sentiment in the market.
The total market value of crypto has evaporated by 500 billion USD since Trump began his tariff policy in February, and has dropped by up to 25% since he took office.
JPMorgan stated: “Bitcoin remains vulnerable to macro factors, despite the White House's supportive crypto policy.”
Positive Signals: Is Bitcoin Becoming a Strategic Asset?
Amid the panic, there are still some notable bright spots:
On Tuesday, the White House held the first crypto conference in history.
The Trump administration is planning to establish a strategic Bitcoin reserve with 200,000 BTC (worth approximately 16 billion USD).
Michael Saylor proposed adding another 21 billion USD in Bitcoin to his company's assets.
Despite the market turmoil, the trading volume of Bitcoin ETFs surged:
On March 10, Bitcoin ETFs recorded 5 billion USD in trading, nearly double the daily average since their launch on January 11.
Ethereum ETFs have also increased trading volume to 662 million USD, higher than the average of 338 million USD.
Bitcoin Price Forecast: Dropping to 70,000 USD?
Although Bitcoin stabilized around 81,000 USD on Tuesday, some experts predict the decline is not yet over:
Mena Theodorou, co-founder of Coinstash, predicts Bitcoin could drop to 69,000 USD.
Arthur Hayes, CIO of #maelstrom , predicts Bitcoin will find a bottom at 70,000 USD.
In response to investor concerns, Hayes offered advice on X:
👉 "Be f*cking patient".
Conclusion: Bitcoin ETF – The Storm is Not Over?
The event of a 430 million USD withdrawal in one day shows that Bitcoin ETFs are not immune to macroeconomic volatility. Although the White House and major organizations still support crypto, market sentiment remains extremely fragile.
The question arises: Will Bitcoin hold above 70,000 USD, or will the sell-off continue? 🤔
