Spot Bitcoin ETFs Face Third Day of Outflows as Market Risk-Off Sentiment Grows

U.S. Spot BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... ETFs Record Consecutive Outflows

The United States spot BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... exchange-traded funds (ETFs) experienced a third consecutive day of net outflows, driven by a downturn in Bitcoin’s price and a broader market risk-off sentiment. As BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... briefly fell below the $90,000 mark, investors pulled significant capital from major spot BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... ETFs, highlighting growing concerns over market volatility. Factors such as rising interest ratesInterest rates are the cost of borrowing money or the reward for saving money, typically expressed as a percentage of the principal amount. When it comes to interest rate trading, ..., inflationary pressures, and global geopolitical tensions have contributed to increased uncertainty in the cryptocurrencyA cryptocurrency is a digital or virtual form of currency that uses cryptography for security. Unlike traditional currencies issued by central banks, cryptocurrencies operate on de... market.

$1 Billion Exits Spot BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... ETFs Over Three Days

According to recent data from SoSoValue, a total of 12 spot BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... ETFs reported net outflows of $284.19 million on January 13, bringing the cumulative three-day outflows to over $1 billion. This trend underscores the cautious stance investors are adopting amid ongoing macroeconomicAt its core, macroeconomics is the branch of economics that examines the behavior, performance, and structure of an economy as a whole. Unlike microeconomics, which focuses on indi... uncertainties.

Fidelity’s FBTC led the outflows, with $113.64 million exiting the fund on Monday. Fidelity, a key player in the cryptocurrencyA cryptocurrency is a digital or virtual form of currency that uses cryptography for security. Unlike traditional currencies issued by central banks, cryptocurrencies operate on de... space, has long been recognized for its institutional-grade financial products and its commitment to digital asset innovation. Investors closely follow Fidelity due to its influence on the broader adoption of crypto assets in traditional finance.

ARK and Grayscale Witness Substantial Outflows

ARK 21Shares’ ARKB ETF also saw significant outflows, with $92.36 million withdrawn. ARK’s involvement in BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... ETFs has been notable for its focus on disruptive innovation, including its emphasis on integrating blockchain technology and fostering access to high-growth digital assets, making its products a barometer for investor sentiment toward high-growth, high-risk assets. The outflows from ARK highlight the shifting riskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and... appetite among market participants.

Grayscale’s GBTC, one of the earliest BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... investment vehicles, recorded outflows of $89.01 million. As a pioneer in offering BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... exposure to institutional and retail investors, Grayscale remains an important player in the crypto market. The outflows from GBTC reflect broader concerns about short-term cryptocurrencyA cryptocurrency is a digital or virtual form of currency that uses cryptography for security. Unlike traditional currencies issued by central banks, cryptocurrencies operate on de... price stability.

Meanwhile, Bitwise’s BITB reported investor withdrawals amounting to $18.64 million. Known for its focus on index-based crypto funds, Bitwise’s products are closely monitored by investors seeking diversified exposure to digital assets.

BlackRock Bucks the Trend with Positive Inflows

In contrast to the prevailing trend, BlackRock’s IBIT ETF recorded an inflow of $29.46 million, likely due to its reputation as a trusted asset manager and its strategic positioning in the digital asset space, which may have appealed to long-term investors despite broader market outflows. BlackRock, the world’s largest asset manager, has increasingly turned its attention to digital assets, signaling growing institutional interest in cryptocurrenciesA cryptocurrency is a digital or virtual form of currency that uses cryptography for security. Unlike traditional currencies issued by central banks, cryptocurrencies operate on de.... The inflows into IBIT suggest that some investors still view BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... as a long-term investment despite short-term volatility.

Declining Trading Volume Signals Waning Investor Activity

The total trading volume across the 12 BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... ETFs reached $3.17 billion on January 13, slightly down from the $3.26 billion recorded the previous day. This decrease in trading volume reflects reduced investor activity amid market uncertainty.

MacroeconomicAt its core, macroeconomics is the branch of economics that examines the behavior, performance, and structure of an economy as a whole. Unlike microeconomics, which focuses on indi... Factors Weigh on Crypto Market

The significant outflows from BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... ETFs coincided with Bitcoin’s brief dip below the $90,000 mark, a psychological level closely watched by market participants. The broader cryptocurrencyA cryptocurrency is a digital or virtual form of currency that uses cryptography for security. Unlike traditional currencies issued by central banks, cryptocurrencies operate on de... market has faced headwinds since the release of stronger-than-expected U.S. payroll data, which caused a surge in bond yields and heightened expectations of tighter monetary policy. Tighter monetary policy typically reduces liquidity in the financial markets, leading to decreased demand for riskier assets like cryptocurrenciesA cryptocurrency is a digital or virtual form of currency that uses cryptography for security. Unlike traditional currencies issued by central banks, cryptocurrencies operate on de....

Adding to the pressure on riskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and... assets, including cryptocurrenciesA cryptocurrency is a digital or virtual form of currency that uses cryptography for security. Unlike traditional currencies issued by central banks, cryptocurrencies operate on de..., were concerns over President-elect Donald Trump’s tariff plans, which boosted the U.S. dollar. A stronger dollar typically weighs on BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... and other crypto assets, as it reduces their appeal as alternative investments.

Importance of Monitoring Key BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... ETFs

For investors, tracking the performance and flows of major BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... ETFs is critical for gauging market sentiment and identifying potential turning points. Fidelity’s FBTC, ARK’s ARKB, and Grayscale’s GBTC are particularly important due to their significant market presence and influence on institutional adoption of digital assets.

Additionally, BlackRock’s positive inflows demonstrate the contrasting investor perspectives in the current environment, suggesting that while some remain cautious, others are positioning for long-term gains. As one of the largest asset managers globally, BlackRock’s involvement in BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... ETFs lends credibility to the asset class and signals growing mainstream acceptance.

Bitcoin Trading Plan

This daily chart of BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... (BTCUSD) displays a confluence of technical indicators, including Bollinger BandsJohn Bollinger, a financial analyst and trader, invented Bollinger Bands in the early 1980s. He designed this technical analysis tool to measure market volatility and provide insig..., a Hull Moving AverageThe Hull Moving Average (HMA) is a technical analysis indicator developed by Alan Hull, a finance and investment analyst, to reduce the lag associated with traditional moving avera..., Fibonacci retracementFibonacci retracement is a fundamental tool in the arsenal of technical analysts and traders. Rooted in the mathematical principles of the Fibonacci sequence, this technique is wid... levels, the MACDThe MACD indicator is essentially a momentum indicator that shows the relationship between two different moving averages of price. The MACD is the difference between the 12-period ... Oscillator, and the Chande Momentum OscillatorThe Chande Momentum Oscillator (CMO) is a technical indicator that measures momentum in a financial instrument. Developed by calculating the difference between the sum of recent ga.... Here’s a comprehensive analysis based on these indicators:

Trend Analysis:
The current trend shows a medium-term uptrend, followed by consolidation near a key resistance zone around $101,000. This resistance aligns with the 23.6% Fibonacci retracementFibonacci retracement is a fundamental tool in the arsenal of technical analysts and traders. Rooted in the mathematical principles of the Fibonacci sequence, this technique is wid... level of the prior uptrend, indicating potential selling pressure at higher levels. The Hull Moving AverageThe Hull Moving Average (HMA) is a technical analysis indicator developed by Alan Hull, a finance and investment analyst, to reduce the lag associated with traditional moving avera... (set at 34 periods) is currently flatlining near $94,450, reflecting the current range-bound behavior. However, price action remains above the 61.8% Fibonacci retracementFibonacci retracement is a fundamental tool in the arsenal of technical analysts and traders. Rooted in the mathematical principles of the Fibonacci sequence, this technique is wid... level ($71,000), which acts as critical support.

Support and Resistance Levels:

• Immediate Resistance: $101,000 (recent high and 23.6% Fibonacci level)
• Intermediate Resistance: $96,750 (mid-point of the Bollinger BandsJohn Bollinger, a financial analyst and trader, invented Bollinger Bands in the early 1980s. He designed this technical analysis tool to measure market volatility and provide insig...)
• Immediate Support: $91,000 (lower Bollinger Band zone)
• Major Support: $71,000–$74,000 (Fibonacci 61.8% level and historical price floor)

Indicators Interpretation:

1. Bollinger BandsJohn Bollinger, a financial analyst and trader, invented Bollinger Bands in the early 1980s. He designed this technical analysis tool to measure market volatility and provide insig...: The price is near the middle of the bands after briefly touching the upper band in late December. This suggests reduced volatility and ongoing consolidation. A breakoutBreakout patterns occur when a stock price moves beyond a defined level of support or resistance with increased volume, signaling the potential start of a new trend. A breakout ind... above or below the bands could signal the next major trend.
2. MACDThe MACD indicator is essentially a momentum indicator that shows the relationship between two different moving averages of price. The MACD is the difference between the 12-period ... Oscillator: The MACDThe MACD indicator is essentially a momentum indicator that shows the relationship between two different moving averages of price. The MACD is the difference between the 12-period ... line is below the signal line and moving lower, with the histogram showing bearish momentumMomentum in stock trading refers to the rate of acceleration of a stock's price or trading volume. It indicates the strength of a trend and measures how quickly prices are rising o... (-507). However, the negative momentumMomentum in stock trading refers to the rate of acceleration of a stock's price or trading volume. It indicates the strength of a trend and measures how quickly prices are rising o... appears to be fading, as seen in the decreasing histogram bars. This suggests a potential bullish crossover could occur if momentumMomentum in stock trading refers to the rate of acceleration of a stock's price or trading volume. It indicates the strength of a trend and measures how quickly prices are rising o... stabilizes.
3. Chande Momentum OscillatorThe Chande Momentum Oscillator (CMO) is a technical indicator that measures momentum in a financial instrument. Developed by calculating the difference between the sum of recent ga...: The reading of 8.80 indicates mild bullish momentumMomentum in stock trading refers to the rate of acceleration of a stock's price or trading volume. It indicates the strength of a trend and measures how quickly prices are rising o... but isn’t in overbought territory. This suggests room for further upside if buying pressure resumes.

Chart PatternsChart patterns are visual formations on price charts that occur due to the behavior of buyers and sellers in the market. These patterns often signal potential future price movement... and Trader PsychologyTrader psychology refers to the emotions and mental states that influence a trader’s decision-making process in financial markets. Emotions such as fear, greed, hope, and regret ...:
The chart shows characteristics of a bullish flagThe bullish flag chart pattern is a technical analysis indicator that signals a potential continuation of an upward trend in a stock, currency, or other financial instrument. It's ... pattern, where the strong uptrend from October to November was followed by a consolidation channel. The psychology behind this pattern is that traders are pausing after a large rally, and a breakoutBreakout patterns occur when a stock price moves beyond a defined level of support or resistance with increased volume, signaling the potential start of a new trend. A breakout ind... above $101,000 could trigger renewed buying interest, leading to continuation of the uptrend. Conversely, a breakdown below $90,000 could lead to panic selling, with a possible drop toward $71,000 support.

Future Trend Forecast:

• Bullish Case: If BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... breaks above $101,000 with strong volume, it may resume the uptrend, potentially targeting $110,000 and beyond.
• Bearish Case: A sustained breakdown below $90,000 could open the door for a deeper correction toward $71,000.
  Given the indicators, short-term consolidation is likely unless there is a major breakoutBreakout patterns occur when a stock price moves beyond a defined level of support or resistance with increased volume, signaling the potential start of a new trend. A breakout ind... or breakdown.

Swing TradingSwing trading is a popular trading strategy aimed at capturing short- to medium-term gains by taking advantage of price swings in financial markets. Unlike day trading, which invol... Plan:

• Entry: Consider entering a long position near $90,000 if support holds.
• Stop-Loss: Set a stop-loss just below $89,000 to limit downside riskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and....
• Profit Target: First target at $96,750 and second target at $101,000.
• RiskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and... Management: Keep the risk-reward ratio at least 1:2.

Long-Term Trading Plan:

• Entry: A staggered entry strategy could be used by buying at current levels ($96,750) and adding near $91,000 if price dips further.
• Stop-Loss: Below $70,000, as a break of this level would invalidate the long-term uptrend.
• Profit Target: Long-term target near $110,000, with potential extensions beyond if the bull run continues.
• RiskIn stock trading, risk refers to the possibility of losing some or all of the capital invested in a trade. It represents the uncertainty about the future performance of a stock and... Management: Consider allocating only a small percentage of your portfolio to this trade due to crypto volatility.

Past performance is not an indication of future results. This article should not be considered as investment advice. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions. 🧡

Strategic Takeaways for Investors

Monitoring these key ETFs provides valuable insights into broader market trendsUnderstanding market trends is a critical component for businesses conducting industry analysis. For example, Netflix identified early on the growing demand for streaming services .... Investors can use this information to make more informed decisions about portfolio diversification, timing their investments, or hedgingFinancial hedging is a strategy used to reduce or eliminate the risk of financial losses that may arise from unfavorable price movements. against potential market downturns. By closely following inflows and outflows in major ETFs, they can identify shifts in sentiment and potential entry or exit points for their crypto-related investments. Staying informed about macroeconomicAt its core, macroeconomics is the branch of economics that examines the behavior, performance, and structure of an economy as a whole. Unlike microeconomics, which focuses on indi... factors and policy changes can further enhance investors’ ability to navigate the evolving crypto landscape.

The recent wave of outflows from spot BitcoinBitcoin is a decentralized digital currency that operates on a peer-to-peer network without a central authority or intermediaries like banks. Here are some key features and aspects... ETFs highlights the impact of macroeconomicAt its core, macroeconomics is the branch of economics that examines the behavior, performance, and structure of an economy as a whole. Unlike microeconomics, which focuses on indi... factors on investor sentiment and market dynamics. While many funds faced significant withdrawals, BlackRock’s inflows indicate that not all investors are deterred by the current volatility. As the cryptocurrencyA cryptocurrency is a digital or virtual form of currency that uses cryptography for security. Unlike traditional currencies issued by central banks, cryptocurrencies operate on de... market continues to evolve, strategic monitoring of ETF flows, market sentiment, and macroeconomicAt its core, macroeconomics is the branch of economics that examines the behavior, performance, and structure of an economy as a whole. Unlike microeconomics, which focuses on indi... trends can provide investors with crucial insights and potential opportunities for long-term growth.

• Author
• Recent Posts

Follow me

Lance Jepsen

Lance Jepsen is the senior personal finance writer for Guerilla Stock Trading who has spent more than 25 years covering the stock market and economics. In addition, Lance has worked as a private stock analyst for a number of high worth individuals.

Follow me

Latest posts by Lance Jepsen (see all)

• How the S&P 500 May React to December’s Inflation Report: JPMorgan’s Insights - January 14, 2025
• Trump’s Plan for Military Spending: Are Nuclear Submarines on the Horizon? - January 14, 2025
• Spot Bitcoin ETFs Face Third Day of Outflows as Market Risk-Off Sentiment Grows - January 14, 2025