Bitcoin ETFs Experience $174 Million Loss Following Mt. Gox Repayments Confirmation
In a recent trend, institutional investors have been actively divesting from U.S. spot Bitcoin ETFs, with net outflows totaling $714 million over the past five trading sessions, as reported by data analytics platform SoSovalue.
The most recent outflow of $174 million occurred following the announcement that Mt. Gox creditors would begin receiving reimbursements starting next week. Notably, Grayscale’s GBTC fund experienced the highest outflow of $90 million, while Fidelity’s FBTC fund saw an outflow of $35 million.
Bitcoin briefly dropped below the $60,000 mark to $59,086 but has since rebounded to trade at $60,770 according to CoinGecko. Despite last week being shortened for U.S. institutional investors due to the observance of Juneteenth, outflows from Bitcoin ETFs totaled $544 million over four trading sessions.
Crypto liquidations across all assets reached $330 million in the last 24 hours, driven by the Mt. Gox news. This negative news flow, combined with the Federal Reserve’s more hawkish stance, has raised concerns among investors. The impending repayment of approximately $9 billion worth of Bitcoin to Mt. Gox creditors could potentially lead to further market turmoil if they decide to sell their holdings.
Bitcoin miners have been selling off their BTC holdings to fund operations or upgrade mining hardware, as evidenced by a 6% decline in the network’s hash rate from its peak on April 24. Julio Moreno, Head of Research at CryptoQuant, highlighted that Bitcoin’s price support currently sits at $56,000, warning of a potential major correction if this level is breached.
The current lack of interest from traders, institutional investors, and market participants has contributed to the ongoing price action in the cryptocurrency market. Moreno emphasized the importance of monitoring key support levels and market sentiment to anticipate potential market movements.
Edited by Stacy Elliott.
Bitcoin miners have been actively selling their holdings, further impacting market dynamics. Moreno’s insights underscore the importance of market monitoring and risk management strategies in the volatile cryptocurrency space.
