Key Points
- US spot Bitcoin ETF recorded a net outflow of $115.6 million on November 3rd.
- BTC rebounded to near $78,000 after briefly falling to $75,600
- Whether Bitcoin can once again reach $80,000 may determine whether its rebound can continue.
As of November, a total of $514 million has flowed out of Bitcoin spot trading ETF. The selling pressure continued until November 3rd, when US spot Bitcoin ETF recorded a net outflow of $115.6 million on that day.
The selling pressure also occurred at a particularly difficult time at the end of October. On October 30th, spot Bitcoin ETF saw a daily outflow of $643.2 million.
However, not all Bitcoin funds ETF faced selling pressure. Fidelity's fund FBTC attracted $6.8 million in new capital, and the BITB of Bitwise recorded a net inflow of $21.9 million, while Grayscale's GBTC also saw an inflow of $3.3 million.
Some of this capital inflow offset the larger-scale capital outflows from BlackRock and Grayscale, but it was not enough to bring the overall market back to a net inflow state.
Despite the continuous outflow of ETF, the price of Bitcoin still rebounded.
During the same period, the price trend of Bitcoin presented a more complex picture. Despite continuous capital outflows from the US-listed ETF, this cryptocurrency still managed to recover some of its recent losses.
On November 3rd, the trading price of BTC was around $76,300, before it rebounded to nearly $78,000. Subsequently, Bitcoin experienced another rapid decline, falling to around $75,600 overnight, only to rebound later on. By early November 4th, Bitcoin had risen back to around $78,230.
The divergence between the rebound in Bitcoin and the outflow of funds from ETF indicates that other buying forces in the market may be helping to absorb the selling pressure from institutions. However, Bitcoin is still below the level of $80,000; if the bullish momentum strengthens, this price level could become an important area that needs to be regained.
What will happen to Bitcoin next?
Although the net outflow of $115.6 million on Tuesday was significantly lower than that of the previous two trading days, the ongoing withdrawal of funds indicates that institutional investors remain cautious. The market will now focus on whether Bitcoin can maintain its rebound near $78,000 and ultimately regain the level of $80,000.
At the same time, the employment report to be released by the United States on November 6 may affect market expectations regarding the Federal Reserve's monetary policy and could bring more volatility to the cryptocurrency market.
About the Author
Danielle Walgenbach is a journalist who covers cryptocurrency and financial markets. With over four years of reporting experience, she is adept at breaking down complex financial and economic topics into clear, well-researched news stories.
