Bitcoin’s momentum has stalled as recent data reveals $268 million in outflows from US-listed Bitcoin ETFs, raising concerns among traders. Following a rejection at $82,500, BTC hovered around $80,000, with $270 million in leveraged bullish futures positions liquidated in just 24 hours. This shift comes despite the S&P 500 hitting an all-time high, indicating a potential disconnect between traditional equity markets and cryptocurrency performance.
The outflows and declining retail engagement, highlighted by disappointing earnings from Coinbase and Robinhood, suggest a cautious sentiment among Bitcoin investors. However, the weakening US dollar and expectations surrounding a new Fed chair, likely Kevin Warsh, could provide a supportive backdrop for Bitcoin. Warsh’s pro-Bitcoin stance and potential government interest in acquiring Bitcoin for reserves could enhance scarcity and drive demand.
Market professionals should note that while recent ETF outflows signal short-term caution, macroeconomic factors and shifts in leadership at the Fed could still pave the way for renewed bullish momentum in Bitcoin.
Source: cointelegraph.com