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Bitcoin Drops Below $68,000 as ETFs Record Negative Flows After 19 Trading Days

source-logo  beincrypto.com 11 June 2024 07:19, UTC

On early Tuesday, Bitcoin’s value dropped sharply to $67,900. This marked a decline of over 3.3% from its Monday peak of approximately $71,200.

This downturn coincided with significant changes in the flow of funds within Bitcoin exchange-traded funds (ETFs), which switched to negative flows after 19 consecutive days of positive inflows.

Bitcoin’s Price Drops Causes Over $100 Million in Liquidations

According to data from Farside Investors, Fidelity Wise Origin Bitcoin Fund (FBTC) reported an outflow of $3 million. Similarly, the Invesco Galaxy Bitcoin ETF (BTCO) saw an outflow of $20.5 million, and the Valkyrie Bitcoin Fund (BRRR) experienced a depletion of $15.8 million.

The Grayscale Bitcoin Trust (GBTC) noted the largest outflow, with $39.5 million exiting the fund.

In contrast, BlackRock’s iShare Bitcoin Trust (IBTC) recorded an inflow of $6.3 million. Additionally, the Bitwise Bitcoin Fund (BITB) attracted $7.6 million on the same day.

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

Despite these gains, the total effect was a net outflow of $64.9 million across all ETFs. The last recorded net outflow day among Bitcoin ETFs was on May 10.

These shifts have significantly impacted fund balances and market stability, resulting in $101 million in crypto liquidations over the last 12 hours. Of this, $94.43 million were from long positions, while short trades saw liquidations amounting to $6.57 million.

Crypto Liquidations. Source: Coinglass

Despite the recent volatility, prominent financial figures maintain a positive outlook on Bitcoin’s future. Robert Kiyosaki, author of “Rich Dad Poor Dad,” advocates for Bitcoin as a strategic path to wealth.

“Making millions as an entrepreneur is hard. I know. You have to be really smart, dedicated, and lucky to become a millionaire starting your own business. I save Bitcoin because Bitcoin does the hardwork for me. That is why I love Bitcoin,” Kiyosaki said.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

As the market processes these changes, the sentiment among cryptocurrency enthusiasts remains cautiously optimistic. Although the immediate future may involve further fluctuations, the enduring appeal of cryptocurrencies like Bitcoin continues to draw both seasoned and new investors.