Bitcoin ETFs Suffer $825M Outflow as US Leads BTC Sales

On a quiet Christmas Eve, Bitcoin Exchange Traded Funds (ETFs) continued their downward trend, shedding another $175 million in net outflows during the final US trading session. This adds to a total of $825 million lost over the past five days, highlighting the US as the 'biggest seller' of Bitcoin (BTC) during this period.

Price Action Details

The current price of Bitcoin stands at $42,350, reflecting a 24-hour decrease of 1.8%, a 7-day drop of 4.2%, and a 30-day decline of 6.5%. Key support levels are observed at $40,000 and $38,000, with resistance at $45,000. Today's trading volume reached $32 billion, slightly above the 30-day average of $29 billion. This recent outflow has contributed to a reduction in Bitcoin's market cap, now at $794 billion.

Driving Factors

The significant outflows from Bitcoin ETFs can be attributed to a combination of profit-taking and a cautious approach to the market following recent volatility. On-chain data from CoinGecko indicates a decrease in active addresses and transaction volume, suggesting a cooling of retail investor interest. Additionally, notable whale activity was observed, with transactions exceeding $10 million becoming less frequent. The news of regulatory scrutiny on crypto-related financial products in the US has further fueled the sell-off, as reported by The Block.

Broader Market Context

Compared to Bitcoin, Ethereum (ETH) has shown relative stability, with a 24-hour change of -0.5% and a 7-day change of -1.2%, currently trading at $2,150. The DeFi sector has also seen a decrease in Total Value Locked (TVL), now at $56 billion, down from $60 billion a week ago, according to DefiLlama. The Fear & Greed Index currently stands at 35, indicating a market sentiment of fear. Analysts like Mike McGlone from Bloomberg Intelligence suggest that the current trend may continue into the new year unless significant positive catalysts emerge.