Bitcoin ETFs Face $938M Outflow; BTC Drops Below $90K

Bitcoin ETFs experienced a significant one-day loss of $938 million, with the exception of one fund. According to data shared by the analytics account Spononchain, spot Bitcoin ETFs faced a massive Bitcoin withdrawal that approached $1 billion.

The largest daily outflow since the release of Bitcoin ETFs in 2024 took place, with $937.9 million worth of BTC leaving eleven exchange-traded funds. The largest damage was done to Fidelity's FBTC, which faced a withdrawal of $344.7 million. BlackRock's IBIT followed FBTC with a $164.4 million loss. Bitwise and Grayscale mini ETFs faced a roughly similar withdrawal, with $88.3 and $88.5 million respectively.

Spotonchain noted that the data it provided did not include Ark Invest, run by renowned investor and Bitcoiner Cathie Woods. However, the tweet suggested that Ark Invest might have also seen a big outflow.

This is the first time in almost four months that Bitcoin has plummeted below the $90,000 level. Over the past 24 hours, the largest cryptocurrency has partly restored its losses, adding roughly 2.45% - Bitcoin has managed to rise from $87,000 to $89,020, where it is changing hands at the moment. The price crash took place roughly a week ahead of trade tariffs imposed by the US president on Canada and Mexico. Additionally, the Fed Reserve is hesitant as to whether to continue interest rate reduction or turn hawkish again.

Binance CEO Richard Teng shared his views on the recent market turbulence. He believes that this is "a tactical retreat, not a reversal." Teng reminded the community that the market has many times retraced and then "bounced back even stronger." For this reason, he said, it is worth staying optimistic. The crypto market reacts to macroeconomic shifts, like conventional assets. However, Teng pointed out that the fundamental indicators of crypto are improving. What is happening now, per Binance CEO, is "a recalibration" and it is important to stay focused and informed.