“Bitcoin Spot ETF Sees Net Outflows for Two Consecutive Days: K33 Research Warns of Sustained Downside Risk Triggered by Long Liquidation”

"Bitcoin Spot ETF Sees Net Outflows for Two Consecutive Days: K33 Research Warns of Sustained Downside Risk Triggered by Long Liquidation"

"Bitcoin Spot ETF Sees Net Outflows for Two Consecutive Days: K33 Research Warns of Sustained Downside Risk Triggered by Long Liquidation"

As the inflow of funds into Bitcoin spot ETF slows down and market concerns about the narrowing space for US interest rate cuts, the price of Bitcoin has fallen from a historical high of $73,798 to around $61,600 in the past week, a decline of nearly 15%. This has raised doubts about whether cryptocurrencies have temporarily peaked.

According to Bloomberg, the uncertainty behind the decline in Bitcoin lies in whether the higher-than-target inflation rate will prompt decision-makers at the US Federal Reserve to adjust their expectations for interest rate cuts at Wednesday’s meeting, indicating that the background for speculative investments may become more unfavorable. At the same time, demand for US Bitcoin spot ETFs has also cooled down, with net outflows on Monday indicating that investors are withdrawing cash from these products.

According to preliminary data from Farside Investors, there were net outflows from US Bitcoin spot ETFs again on Tuesday (19th), totaling $326 million. Among them, Grayscale’s Bitcoin spot ETF (GBTC) saw net outflows of approximately $443 million.

Although the Bitcoin spot ETF “iShares Bitcoin Trust” (IBIT) issued by BlackRock still saw net inflows, the amount decreased from $451 million the previous day to $75.2 million.

K33 Research, a cryptocurrency research company, believes that the continued large-scale “washout” of bullish bets using derivatives may trigger further declines, indicating a potential obstacle to any rapid recovery in the digital asset market. Anders Helseth and Vetle Lunde of K33 Research wrote in a report that data from Coinglass shows that the total amount of liquidation from both long and short positions on the entire network in the past 24 hours exceeded $657 million, with approximately $492 million worth of long positions being liquidated.

Source: Coinglass