Bitcoin ETFs Register The Highest Daily Outflows In Over 2 Months In Potential Rate Hike Repricing

Principales conclusiones

• Bitcoin ETFs offloaded $450 million worth of BTC on Tuesday.
• Markets are reportedly pricing in a 93% chance of a rate hike.
• Selloff pushes Bitcoin towards yet another critical level where further weakness may trigger another cascade.
• Daily spot outflows hit the highest level since June.

Bitcoin ETFs recorded their largest daily net outflow in nearly three months as investors reduced exposure before the Federal Reserve’s September policy decision. U.S. spot Bitcoin funds posted $450.4 million in net withdrawals on Sept. 15.

Bitcoin also fell toward $76,000 after the Senate failed to advance the CLARITY Act. The Federal Reserve has since raised interest rates by 25 basis points, leaving traders focused on whether tighter monetary policy could trigger another move lower.

Bitcoin ETFs May Be Pricing In A Fed Rate Hike

The recent sell-off from the institutional cohort suggests that they might be pricing in a potential rate hike. The market has been waiting for the Federal Reserve to announce its latest interest rate decision.

However, recent market data suggest the markets have been expecting a rate hike. The market already anticipated a 92.3% chance of a rate hike prior to the announcement.

This pricing in may be the reason why Bitcoin price has been facing elevated selling pressure. BTC was down almost 8% from its September top at press time.

The cryptocurrency hovered above $75,700 after tanking by 3.3% on Tuesday. This suggests that institutional outflows contributed a great deal to the downside.

The outflows and subsequent sell pressure have BTC price hovering at the 50% level. This suggests that the cryptocurrency is now in yet another balancing act.

An unfavorable macro outcome could tip the scale in favor of the bears. This means price may slide towards the $72,000-$73,000 price range, which is the breakeven range for Bitcoin ETFs.

Moreover, a rate hike would likely push investors away from risk-on investments and toward safe-haven assets. However, there is also the matter of the CLARITY Act to consider.

Analysts have also been waiting for the Senate’s decision on the CLARITY Act. If passed, it could lend more strength to the bulls, but an opposing outcome could set the stage for heavy liquidity outflows.

Where Is The Liquidity Flowing

Bitcoin exchange reserve data suggests that just over 8,500 BTC was added to exchanges in the last 2 weeks. This also reflected as a noteworthy spike in exchange outflows during the same period.

Interestingly, Bitcoin spot outflows jumped to $382 million on Tuesday. This was the highest spike in outflows that the market has achieved since 5 June.

Despite these outflows, large-order-book data indicated a different stance among the whale cohort. Whales held green positions across OKX, Binance, and Coinbase. This was both in the spot and derivatives segments.

In other words, institutions have been pushing down Bitcoin’s price to shield themselves from potential fallout from a rate hike. However, the whales have been buying up more BTC at discounted prices and positioning for a potential bounce.

Whichever direction the Bitcoin price takes in the second half of the week, one thing is for sure. The prospects of a rate hike have certainly spooked the market, and the CLARITY Act standoff has not made things any better.

This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments involve risk, and ETF flows or technical levels do not guarantee future price performance.

El artículo Bitcoin ETFs Register The Highest Daily Outflows In Over 2 Months In Potential Rate Hike Repricing apareció primero en The Coin Republic.