BlackRock Bitcoin ETF Sees Record $188M Outflow, BTC Surges Above $98K

On December 24, BlackRock’s iShares Bitcoin ETF (IBIT) recorded its largest-ever outflow, reaching $188.7 million.

This comes amid a series of consecutive outflows from U.S. spot Bitcoin ETFs, amounting to $1.5 billion over the past four days. Investors are closely watching these outflows, which are happening as Bitcoin prices recover from lows around $94K to surpass $98K, likely driven by the anticipated “Santa Claus rally.”

However, the growing outflows from major funds, like Fidelity’s FBTC and Ark Invest’s ARKB, raise concerns about a potential shift in market sentiment as we approach the year-end.

US Spot Bitcoin ETFs Show Weak Performance

U.S.-based Bitcoin ETFs have experienced significant outflows, with the total for the last four days reaching $338.4 million. Among the biggest contributors to this decline are Fidelity’s FBTC, which saw $83.2 million leave, and Ark Invest’s ARKB, which experienced a $75 million drop.

These consecutive outflows reflect growing uncertainty about the market’s direction, particularly as traders prepare for a year-end expiry in crypto options and anticipate the effect of potential political and economic shifts, such as Donald Trump’s upcoming inauguration.

Bitcoin Price Outlook Amid ETF Outflows

Despite the challenges faced by Bitcoin ETFs, the cryptocurrency market shows signs of resilience, with Bitcoin’s price jumping 4% in the last 24 hours. Currently trading around $98,014, Bitcoin remains above critical support levels, with a price range between $93,744 and $99,404.

Traders are advised to monitor volume and market sentiment closely. The passive ask liquidity around the $100K mark is a critical level, and with $14.4 billion in Bitcoin options set to expire on Deribit this week, the market’s volatility is expected to be a significant factor in Bitcoin’s price movement into Q1 2025.

Key Insights:

  • BlackRock Bitcoin ETF saw its largest-ever $188M outflow.

  • U.S. spot Bitcoin ETFs experienced a $338.4M total outflow.

  • Bitcoin price recovers from $94K to $99K amid holiday rally.

  • Market liquidity remains crucial for Bitcoin’s short-term outlook.

  • Options expiration this week could add to market volatility.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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