Bitcoin, ETFs Stumble After Inflation Data Release, Fed Meeting-Will They Plunge Further?

Following inflation data and the Fed meeting, Bitcoin dipped to $67,000, sparking liquidations and market volatility, with ETFs seeing outflows after consistent inflows.
Bitcoin BTC price Voice of crypto

Bitcoin BTC price Voice of crypto

Key Insights

  • Bitcoin and other cryptocurrencies are experiencing a price drop ahead of inflation data and the ongoing FED meeting.

  • Bitcoin has fallen to the $67,000 zone, triggering liquidations and marking its lowest point since late May.

  • After weeks of inflows, the Bitcoin ETF market is experiencing outflows for the first time in nearly three weeks.

  • The upcoming inflation data is expected to be modest, and the Fed meeting is expected to yield no rate cuts.

  • Bitcoin and the broader crypto market are likely to experience volatility in the coming days and weeks.

One good look at the crypto market at the time of writing, would reveal a massive sea of red.

Aside from last week's flash crash, this week has seen another quick switch in investor sentiment, leading to traders becoming ever more cautious, especially as the anticipation of the US inflation data for May builds.

Following the release of this inflation data and potential FED decision on interest rates, Bitcoin has now crashed to as low as the $67,000 zone, triggering a wave of $200 million in liquidations across the board between Monday and Tuesday this week, per Coinglass data.

ETFs Witness a Shift

The Bitcoin ETFs aren’t faring any better, according to data from Farside.

After registering weeks (a whopping 19 days!) of consistently positive inflows, the Bitcoin ETF market has turned red.

Now, for the first time in nearly three weeks, the Bitcoin ETFs have lost millions in net outflows, with the price action of Bitcoin eventually catching up to these investment vehicles.

Farside data shows that on 10 June, the US spot Bitcoin ETFs collectively lost around $64.9 million, with Grayscale’s GBTC predictably leading the outflows.

The GBTC suffered the most, losing $39.5 million of the total $64.9 million, leaving Invesco Galaxy’s BTCO with a staggering $20.5 million outflow.

<div class="paragraphs"><p>Combined ETF outflows</p></div>

Combined ETF outflows

The others experienced little to no outflows, with Fidelity’s FBTC struggling with a smaller outflow of $3 million, and Blackrock’s IBIT managing to stay green.

By 11 June, these figures worsened, with the total ETF market bleeding another $200 million, and Grayscale's GBTC suffering a staggering $121 million of these outflows.

So far, not a single Bitcoin ETF experienced inflows as of 11 June, with Ark 21Shares’s ARKB suffering $56 million worth of outflows.

<div class="paragraphs"><p>The total net assets of Bitcoin ETFs</p></div>

The total net assets of Bitcoin ETFs

Soso Value data also shows that the total net assets accumulated by these ETFs have fallen to a little over $59 million, all the way from well over $62 million just last week.

Bitcoin’s Price Reaction

Bitcoin, at the time of writing, is fighting for stability at around $67,000, especially after dripping by around 4.81% over the last week.

As it stands, If Bitcoin goes any lower than its current price, this would mark its lowest point since 31 May as shown below.

<div class="paragraphs"><p>Bitcoin’s price decline</p></div>

Bitcoin’s price decline

Bitcoin is currently showing a great deal of strength around this $67,500 price level, despite appearing to stray further away from its all-time high with each passing day.

So far, we are seeing similar consolidations/recoveries on the other cryptocurrencies like Ethereum, Solana, and Dogecoin, with most of them turning slightly green over the last 24 hours, after losing 3 - 5% each at the start of the week.

Overall, investors and traders continue to keep an eye out for these economic indicators, and everyone should too.

Bitcoin is going to be poised for a lot of volatility between this week and the next, and it might help to DYOR, and only execute trades after due diligence from here on out.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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