Bitcoin is struggling to maintain the $57,000 level, while Bitcoin spot exchanges (ETFs) saw their largest single-day outflows in four months this week, as investors withdrew their money in response to the general market downturn.
Bitcoin was relatively flat on Thursday, up slightly 0.2% to $56,900, according to Investing Saudi Arabia data.
Meanwhile, Ethereum (ETH-USD) rose 0.7% to $2,412, and Cardano (ADA-USD) rose 0.8% to $0.32.
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Large withdrawals from Bitcoin ETFs
More than $287 million was withdrawn from 11 U.S.-listed bitcoin ETFs on Tuesday, marking the largest outflows since May. The sell-off continued through Wednesday, with net outflows of $37 million.
These funds, which were launched in January after approval by the U.S. Securities and Exchange Commission (SEC), have seen investor interest decline in recent months. Bitcoin spot funds now manage about $52.6 billion in assets, down $10 billion from their peak.
Tuesday saw the biggest sell-off in the US bitcoin ETF market in four months. Fidelity saw the largest draws, with investors withdrawing more than $162 million from the FBTC fund. Graixel followed with $50.4 million in outflows, while Arc Invest saw withdrawals of $33.6 million. The Bitwise Fund also saw outflows of $25 million.
On Wednesday, Graysscale led outflows of $34.2 million, while Fidelity saw withdrawals of around $7.6 million. The Bitwise Fund saw a net inflow of $9.5 million.
Investors await a Fed rate cut
Bitcoin traders are waiting for the impact of a possible rate cut at the next US Federal Reserve meeting in mid-September.
The US interest tracker available on Investing Saudi Arabia shows a 59% probability of a 25 basis point cut in September, and a 41% chance of a 50 basis point cut.
The tool also points to a 49% probability that the central bank will cut rates by 75 basis points ahead of its meeting in November, which will be held two days after the US presidential election.
A low interest rate environment may make traditional financial assets such as bonds and savings accounts less attractive, prompting investors to look for higher returns in riskier assets such as stocks and bitcoin.
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