Amid a wider readjusting of market expectations for interest rate cuts by the 
Federal Reserve (Fed) for 2025, investors withdrew a record $680 million from 
Bitcoin ETFs on Thursday, the highest outflow in a single day since January&#8217;s 
approval of these investment funds. Grayscale And Bitwise Bitcoin ETFs 
Experience 8% Decline As Bitcoin ETFs faced this outflow, the price declined, 
dropping another 5% to trade around $97,400 to close the week. The sell-off 
aligns with a general downturn in risk assets, triggered by the Fed&#8217;s updated 
economic projections released earlier this week. The US central bank now 
anticipates only two quarter-point rate cuts in the coming year, a significant 
reduction from the four cuts previously expected at its September meeting. 
Related Reading: How Low Can Dogecoin Go Before It Rebounds? Expert Forecasts 
Notable Bitcoin ETFs, including Grayscale&#8217;s Bitcoin Trust and Bitwise&#8217;s 
Bitcoin ETF, have experienced declines of approximately 8% since the Fed&#8217;s new 
guidance, while Bitcoin itself has lost about 9% in the same timeframe. 
Notably, Thursday&#8217;s outflows broke a streak of 15 consecutive days of inflows 
for the twelve US Bitcoin ETFs, for a net inflow of approximately $5.3 billion 
during this period. After hitting a record high of just over $108,000 earlier 
in this week, the market&#8217;s top cryptocurrency dropped below the $100,000 level 
on Thursday. Prior to the recent recovery, which is just around $100,000, it 
fell all the way to $92,000. While the bearish sentiment in the markets can be 
attributed to the Fed&#8217;s cautious stance, it is also likely influenced by 
seasonal profit-taking among institutional investors of the Bitcoin ETFs. 
Analysts Warn Of Continued Crypto Sell-Off The recent selling pressure could 
further strain market sentiment, as noted by Joseph Dahrieh, managing 
principal at Tickmill. &#8220;This decline could weigh strongly on the 
cryptocurrency and broader market sentiment, particularly as Bitcoin fell 
below the USD 100,000 mark, indicating potential short-term volatility and 
downside risks,&#8221; he remarked. The volatility has been exacerbated by massive 
liquidations in both long and short positions, totaling over $240 million 
within a 24-hour period. Antonio Di Giacomo, a senior market analyst at 
XS.com, commented, &#8220;The Federal Reserve&#8217;s cautious stance in signaling fewer 
cuts for 2025 created an atmosphere of doubt and speculation.&#8221; Related 
Reading: Ethereum Investment: Trump Crypto Project Grabs 722 ETH At $2.5 
Million Looking ahead, the sell-off in the cryptocurrency market may persist 
in the near term. Alex Kuptsikevich, chief market analyst at FxPro, speculated 
that the total market capitalization of cryptocurrencies could drop below $3 
trillion, down from a peak of $3.7 trillion earlier this month. He cautioned 
that &#8220;a failure below $94,500 would signal a break of the uptrend of the last 
six weeks, while a fall below $92,000 would bring the price under the 50-day 
moving average. In this case, time is playing on the side of the bears.&#8221; As of 
this writing, Bitcoin has managed to stabilize above $97,400 as the week draws 
to a close, despite registering 4% losses over the previous 24 hours. Featured 
image from DALL-E, chart from TradingView.com

Spot Bitcoin ETFs Bleed: 6,700 BTC Exit Amidst Largest Outflow In Months

Due to yesterday’s crypto market rout, Ethereum (ETH) has now faced rejection 
at the key $4,000 resistance level for three times since March 2024. The 
second-largest cryptocurrency by reported market cap is now trading at the 
$3,400 level, down 6.7% in the past 24 hours. What’s Behind Ethereum’s 
Underwhelming Price Performance? While ETH has posted a respectable 47% year- 
to-date (YTD) gain, it has been outpaced by other major cryptocurrencies like 
Bitcoin (BTC), Solana (SOL), and XRP, which have recorded significantly higher 
returns in the same period. Several factors appear to be holding back 
Ethereum’s price momentum. Related Reading: Ethereum Risk-Reward Ratio Is Now 
Attractive, Brokerage Firm Explains One contributing factor is Ethereum’s 
comparatively weaker brand recognition versus Bitcoin. This was highlighted by 
the lackluster response to the launch of spot ETH exchange-traded funds (ETFs) 
in August. The introduction of these ETFs failed to generate any meaningful 
price movement for ETH. Data further reveals a significant disparity in 
investor interest between the two assets. The total net assets held in U.S. 
spot ETH ETFs currently amount to $11.98 billion. In contrast, spot BTC ETFs 
hold $109.66 billion &#8211; nearly ten times as much. Additionally, yesterday saw 
over $60 million in outflows from spot ETH ETFs, marking the largest single- 
day outflow since November 19. Crypto analyst Ali Martinez pointed out that 
social sentiment around ETH has reached its lowest point in a year. However, 
based on historical trends, this could paradoxically signal a bullish 
opportunity for Ethereum. Futures traders have also turned bearish on ETH, as 
the aggregated premium for futures positions flipped negative for the first 
time since November 6. The market downturn triggered Ethereum’s largest 
liquidation event since December 9, with $299 million liquidated in a single 
day. Such large-scale liquidations often lead to cascading sell-offs and 
heightened price volatility. Another recurring concern stems from the Ethereum 
Foundation’s tendency to sell ETH near local price peaks. In a recent X post, 
Lookonchain noted that the Ethereum Foundation sold 100 ETH on December 17. 
Following this sale, ETH’s price has dropped approximately 17%. Further 
skepticism surrounds Ethereum’s supply issuance. A recent Binance Research 
report highlighted that ETH’s relatively high issuance rate raises questions 
about its &#8220;ultrasound money&#8221; narrative, which suggests Ethereum is a 
deflationary asset. Is Ethereum Set For A Bounce? Seasoned crypto analyst 
@Trader_XO stated that they bought spot ETH at the $3,200 price level 
yesterday. The analyst added that they expect “a good few weeks” of price 
consolidation before ETH’s next leg up. Related Reading: 7.8M Ethereum Leaves 
Binance In Two Months—What Does This Mean for ETH? Meanwhile, crypto trader 
@CryptoShadowOff identified a potential ascending triangle formation on ETH’s 
monthly chart. According to their analysis, ETH could drop further to the 
$2,800 range before targeting a new all-time high (ATH). Market analyst 
@CryptoBullet1 emphasized that on the 4-hour chart, ETH has not been this 
oversold since August 5, indicating a bounce may be on the horizon. At press 
time, ETH trades at $3,400, down 6% in the past 24 hours. Featured image from 
Unsplash, charts from Coinglass, X, and Tradingview.com

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