Last Monday proved to be a dark day for Bitcoin investors. Not only did the price decline, but funds tracking the cryptocurrency also saw significant outflows. A pivotal moment that could signal a turning point.
Yesterday, the 11 funds tracking the price of Bitcoin experienced a significant hemorrhage. According to data from Farside Investors, net outflows reached $363.1 million, a level not seen since August 19.
Investors rushed to sell their ETF shares, forcing fund managers to liquidate large quantities of Bitcoin on the market. This mechanism explains the strong correlation between fund movements and the cryptocurrency’s price.
American giant Fidelity recorded the largest hemorrhage, with a net withdrawal of $276.7 million. Meanwhile, BlackRock, which manages the world’s largest Bitcoin ETF, did not experience significant differences between inflows and outflows.
Ethereum funds were not spared, with a loss of $76 million. But the damage was most significant among Altcoins, allowing Bitcoin to regain market share.
According to analyst Benjamin Cowen, Bitcoin should continue to outperform other cryptocurrencies in the coming weeks. “I think Bitcoin dominance is forming a low and will start trending back up late September and for basically all of October. Liquidity shall flow back to the king,” he tweeted.
Despite these outflows, this drop has pushed altcoins to interesting levels. Indeed, altcoins like Ethena (ENA) and HYPE are at levels not seen for several months and are sitting on solid support zones.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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