On March 14, spot Bitcoin exchange-traded funds (ETFs) based in the United States experienced a significant decrease in net inflow, with only $132 million recorded. This marks the lowest level in the past eight trading days and an 80% drop from the previous day, March 13.
The decline continued on Thursday, making it the second consecutive day of decrease. On Wednesday, inflows reached $684 million, reflecting a 38.3% decrease from March 12. Tuesday, on the other hand, saw a record-breaking single-day inflow of $1.05 billion.
The total flow of funds into the ETFs on March 14 amounted to $390 million, with the Grayscale Bitcoin Trust ETF (GBTC) experiencing outflows of $257 million. This brought the net inflow to $132 million. On the same day, the VanEck Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund recorded inflows of $13.8 million and $13.7 million, respectively. Despite the significant outflow from GBTC, net flows remained positive on Thursday.
The iShares Bitcoin Trust ETF from BlackRock received the largest inflows at $345 million. Overall, the cumulative net inflows into the U.S. spot Bitcoin ETF are approaching the $12 billion mark after 44 days of trading.
The change in investor sentiment coincides with a broader downturn in the crypto market as the price of Bitcoin dropped below $69,000.
The declining inflows in ETFs have had an impact on the fluctuation of the BTC price. After a bullish price action on March 13, Bitcoin reached a new all-time high above $73,000 before reversing course on Thursday.
The price dipped further on March 15 to around $66,000, resulting in the liquidation of millions of leveraged positions. According to data from CoinGlass, a total of 193,431 traders were liquidated in the past 24 hours, with a cumulative liquidation amount of $682.14 million.
Market analysts believe that the current market volatility, regulatory uncertainties, and macroeconomic factors have made investors more cautious. The current decline is also attributed to the upcoming Federal Open Market Committee meeting next week, which could provide insights into the Federal Reserve’s future plans for interest rates.
In other news, X Hall of Flame, also known as the Bitcoin Man, predicts that China will intensify the Bitcoin bull run, projecting a price of $1 million by 2028.