Bitcoin Price Nears $55,000 as ETF Outflows Continue for 7th Consecutive Day – Decrypt

Bitcoin plummeted to a low of just over $55,000 on Friday morning, with experts warning that it could fall further to $50,000 after the Bitcoin ETF recorded its seventh consecutive day of outflows.

of Bitcoin Price According to data from CoinGecko, Bitcoin fell to a low of $55,363 before recovering and is currently trading at $56,125, down 1% from the previous day, reflecting market-wide uncertainty and a decline in investor risk appetite.

Market analysts noted that a confluence of factors including sustained ETF outflows, broader economic uncertainty, and technical indicators suggest that Bitcoin could be facing a significant correction in the near term.

While some see the current volatility as a potential opportunity, the general sentiment is one of caution, with the Crypto Fear and Greed Index falling to 22, indicating “extreme fear” among investors.

Bitcoin ETF sees outflows for 7th consecutive day

Bitcoin’s decline comes amid a surge in withdrawals from cryptocurrency ETFs.

According to data from SoSo Value, the Bitcoin Spot ETF saw net outflows of $211 million on September 5, marking the seventh consecutive day of outflows and the longest streak of outflows since June.

Fidelity’s FBTC saw the largest daily loss on September 5 with outflows of $149.5 million, while Bitwise (BITB) and Grayscale Bitcoin Trust (GBTC) ETFs saw outflows of $30 million and $23.2 million, respectively. The total net assets of Bitcoin spot ETFs are currently $50.727 billion.

Ethereum ETFs also took a hit, with net outflows hitting $152,700 on Sept. 5. Notably, the Grayscale (ETHE) ETF recorded a net outflow of $7,389,500 in one day. Interestingly, however, the Grayscale mini ETF (NYSE: ETH) bucked the trend with a net inflow of $7,236,800 on the same day, the data shows.

talk DecryptionDavid Morrison, market analyst at FCA-regulated firm Trade Nation, noted that broader market trends are influencing cryptocurrency prices, saying that risk appetite has fallen significantly this week.

“Investors appear to be very nervous, especially ahead of today’s U.S. nonfarm payrolls report and next week’s inflation flash report, as well as the Fed’s interest rate decision on Sept. 18,” he said.

Market tensions are further evidenced by mass liquidations.

According to data from Coinglass, the cryptocurrency market saw $98.58 million in liquidations across the board in the past 24 hours, of which $74.11 million was from long positions.

Intergovernmental blockchain adviser Andy Liang predicted that Bitcoin will fall below $55,000 this week and continue to fall further to around $50,000.

He directly linked this prediction to ETF outflows, saying, “The decline began on August 30th and has struggled to sustain above $60,000. This is also when we will see significant ETF outflows.”

Raj A. Kapoor, founder of the Blockchain Governance Council, believes multiple factors are influencing the current market trends.

“We believe the sharp drop in Nvidia’s stock price following the U.S. subpoena is what ignited the fire that ignited Bitcoin,” Kapoor said.

He elaborated on the current negative sentiment in the cryptocurrency market, claiming that the drop has scared investors away, leading them to fear that the bottom has fallen out, at least for the time being. “Bitcoin’s current support levels are shaky and we expect a sharp drop to bottom at or below $50,000,” he said.

“Any dip would be an opportunity flipper and investors should closely monitor the key support levels of $56,000, $47,000 and $40,000,” he added, suggesting that “an upswing from here and beyond these levels would signal a possible reversal.”