US bitcoin exchange-traded funds (ETFs) have experienced their longest streak of daily net outflows since their launch earlier this year. Data compiled by Bloomberg shows investors pulled nearly $1.2 billion from a group of 12 bitcoin ETFs over the eight days leading up to September 6. This exodus comes as global markets grapple with heightened volatility and economic uncertainty, pushing investors away from riskier assets.
The market turbulence is partly fueled by mixed US jobs data and deflationary concerns in China. These developments have hit stocks and commodities, while the cryptocurrency market, including bitcoin, has increasingly mirrored stock market trends.
Bitcoin’s September Struggles
Bitcoin has had a rough start to September, losing about 7% of its value. However, over the weekend, the digital asset saw a slight recovery, climbing around 1% to $54,870 by 1 p.m. Monday in Singapore. This modest uptick has been partially attributed to prominent influencers closing their short positions, including a social media post from Arthur Hayes, co-founder of the BitMEX trading platform.
Additionally, the political landscape in the US is impacting market sentiment. According to Sean McNulty, director of trading at Arbelos Markets, an improved outlook for Donald Trump, the pro-crypto Republican nominee, in polls for the upcoming US presidential election may also be driving some of the market movement. McNulty highlighted a rise in demand for options hedges ahead of a debate between Trump and Democratic nominee Vice President Kamala Harris, who has yet to clarify her stance on cryptocurrency.
Bitcoin ETF Rollercoaster
US bitcoin ETFs made a significant splash when they launched in January, drawing strong demand and helping to drive bitcoin to a record high of $73,798 in March. However, after an initial surge of inflows, demand for these funds has moderated. Bitcoin’s year-to-date rally has now cooled to roughly 30%.
According to Caroline Mauron, co-founder of Orbit Markets, bitcoin will likely continue trading within its current range of $53,000 to $57,000 until the US releases its consumer-price data on Wednesday. This key inflation report is expected to influence the Federal Reserve’s future monetary policy, which could further affect market direction for bitcoin.
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