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Bitcoin Price Declines as ETF Outflows Raise Concerns, $640M Out in One Day

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Recently, the price of Bitcoin went down to $39,998, and things aren’t looking great for Bitcoin-related bitcoin investment funds.
These funds, known as exchange-traded funds (ETFs), have seen a total of $76 million leaving them in just seven days, according to James Seyffart, who looks at ETFs for Bloomberg.
Seyffart shared this information on January 23 on X; He called it a “bad day” for Bitcoin ETFs, especially pointing out that Grayscale, one of the biggest names in this area, had the most money leaving.
“Today, $640 million left the market. The outflows are not stopping; they are getting more. This is the biggest amount leaving GBTC (Grayscale’s Bitcoin Trust). So far, $3.45 billion has left,” Seyffart said.
Although Grayscale is facing a lot of money leaving, Seyffart mentioned that, overall, more money is still coming into these Bitcoin investment funds. BlackRock, a big player in this space, got $272 million more on the same day.
“In total, over $1.1 billion went into these Bitcoin investment funds, even when we consider the money leaving GBTC,” Seyffart explained.
Even though it seems like a lot of money is leaving Grayscale, Seyffart believes this might slow down in the next few weeks. The money leaving Grayscale is linked to a big sale from a group called the FTX estate. This group sold a lot of its Bitcoin shares, contributing to about $600 million of the total $3.4 billion leaving Grayscale.
It is worth noting that Bitcoin’s price has been dropping since January 10, when 10 new investment funds related to Bitcoin were approved. It went from $49,100 to $39,500 on January 23. Right now, Bitcoin is staying just above $40,000.
This drop in Bitcoin’s price is also connected to less interest from big investors who usually trade in something called Bitcoin futures. These are contracts where people bet on what they think the future price of Bitcoin will be. Less interest in these contracts might show that big investors are not as excited about Bitcoin right now.
In simple terms, the situation suggests a bit of uncertainty in the Bitcoin market. People are taking money out of certain Bitcoin-related funds, and big investors seem less interested in making big bets on Bitcoin’s future price for now. What is next?
The post Bitcoin Price Declines as ETF Outflows Raise Concerns, $640M Out in One Day appeared first on UNLOCK Blockchain.

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