Bitcoin ETFs Bleed $671.9M in Record Outflows as BTC Price Dips Below $97K

Bitcoin exchange-traded funds recorded their largest single-day outflows of $671.9 million on Dec. 19, contributing to Bitcoin's price dip below $97,000. The sell-off triggered over $1 billion in market liquidations and highlighted the crypto market's growing volatility.

Bitcoin ETFs See Record Outflows on Dec. 19

Dec. 19 saw the biggest single-day outflow event of the year, with net withdrawals of $671.9 million from Bitcoin exchange-traded funds (ETFs).

After ARK Invest's ARKB lost $108.4 million, the biggest outflows occurred in Grayscale's GBTC, which lost $208.55 million, according to statistics from Farside Investors.

Coinciding with the removal of almost $1 billion from the market in a single day, the consequence of these outflows is a decline in the price of Bitcoin (BTC), which is currently hovering at $96,409.

Bitcoin Price Declines as ETF Net Assets Shrink

After reaching $121.68 billion on December 17, according to Sosovalue statistics, Bitcoin ETFs' total net assets were $109.66 billion on December 19—a significant decline from the increases recorded in December.

The outflow of Bitcoin ETF funds occurred at the same time as the price decline of BTC and totaled $732.4 million in crypto ETF net assets, as reported by CoinMarketCap.

Even if there were large withdrawals on December 19, Bitcoin's dominance remains at 57.4 percent of the cryptocurrency market.

Analysts Weigh In on the Steep Decline

The market was "completely unprepared for bad news," according to one expert, which caused the steep dip, although the analyst also hinted that the current decline could be temporary.

If the incoming Trump government does what he has said and helps encourage innovation in the cryptocurrency industry, it is believed that the Trump administration will be pro-crypto.

Because of these expectations, the price of Bitcoin has surpassed the $107,000 level, and the cryptocurrency market has been reenergized as hope and greed have returned.

Hawkish Fed Signals Impact Crypto and Stocks

Investors in the US were bracing for a 0.25 percentage point rate drop from the Federal Reserve, but Chair Jerome Powell's comments that only two additional rate cuts would be scheduled for 2025 sparked a hawkish view.

The statement caused a precipitous decline in the S&P 500, which may have domino effects in the cryptocurrency market as fear has supplanted greed.

The ratio of crypto discussions surrounding purchasing the downturn in the market touched its greatest level in over eight months, according to crypto analysis firm Santiment, in a post on Dec. 19 X.

Social Dominance Surges Amid 'Buy the Dip' Sentiment

According to Cointelegraph, the market may be as red as a Rudolph's nose, but the social dominance score has reached 0.061, mentioning "buying the dip" throughout social media channels.

On April 12, the price of Bitcoin fell below $70,000 and hovered around $67,000; on April 13, it continued to fall and hovered around $63,000, surpassing this score.