Bitcoin ETFs saw significant net outflows of over $200 million! As uncertainty surrounding US inflation data gripped the market. Investors are reassessing their positions in risky assets, including Bitcoin ETFs, as inflation fears rise.
US inflation: Fear causes Bitcoin ETFs to hemorrhage!
Daily net outflows of $200.31 million were recorded by US spot Bitcoin ETFs on June 11! The Grayscale Bitcoin Trust (GBTC) and the ARK 21Shares Bitcoin ETF (ARKB) being the most affected, with outflows of $121 million and $56 million respectively. Meanwhile, BlackRock's iShares Bitcoin Trust (IBIT) saw no inflows during the same period.
This trend is notable, as these ETFs had seen positive net inflows since May 13. However, outflows started occurring from June 10 as market participants anticipated the release of US Consumer Price Index (CPI) data for May.
The future outlook for inflation
Global markets analyst Jesse Cohen noted the increased market volatility surrounding the upcoming ICP report. He indicated that a cooler-than-expected ICP report could extend the market's ongoing rally. However: “A surprisingly strong inflation reading could trigger market volatility, as it could delay expectations of a rate cut and raise concerns about inflationary pressures,” he added.
Research firm The Kobeissi Letter noted the divided expectations regarding the ICP data. She emphasizes that although major banks expect ICP inflation to be at 3.4%, prediction markets indicate a 17% chance of inflation above 3.4% and a 41% chance % below 3.4%.
In conclusion, net outflows from spot Bitcoin ETFs reflect global economic uncertainty. Upcoming inflation data could influence the market trend, highlighting the importance of investor vigilance over fluctuating economic indicators.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
Click here to join 'Read to Earn' and turn your passion for crypto into rewards!
