"Bitcoin Drops 2% Amid Waning Sentiment; Goldman Sachs Doubles Bitcoin ETF Holdings"
1min read Bitcoin (BTC) has experienced a decline of nearly 2% in the current session, as investors grapple with waning sentiment and lower risk appetite. The cryptocurrency is trading just over $96,000, with buyers attempting to prevent a further drop. Analysts believe BTC is currently in a consolidation phase above key support levels, but it must reclaim $100,000 to initiate a fresh rally and push towards its all-time high.
Spot Bitcoin ETFs registered a sharp increase in outflows on February 12, with $251 million in outflows, a 342% jump from the previous day's $56 million. Fidelity led the outflows, registering $101.9 million, followed by ARK and 21Shares ARKB with $97 million. However, Grayscale's Mini Bitcoin Trust recorded over $16 million in inflows. The total trading volume for Bitcoin ETFs was $2.53 billion on February 12, with cumulative net inflows at $40.21 billion.
Spot Bitcoin outflows coincided with a drop in BTC's price following stronger-than-expected US inflation data. January's inflation was at 3.3%, exceeding the forecasted 3.1%. With inflation higher than expected, investors anticipate only one rate cut in 2025, with the Fed likely to maintain the status quo until 2026, adversely impacting risk assets like BTC.
Goldman Sachs has doubled down on its Bitcoin ETFs, significantly increasing its spot Bitcoin ETF holdings, according to its latest 13F filing with the United States Securities and Exchange Commission (SEC). The bank now holds $1.57 billion across various Bitcoin ETFs, up from the $710 million reported in Q3. Goldman Sachs' largest exposure to BTC is with BlackRock's iShares Bitcoin Trust (IBIT), where it holds 24.07 million shares worth $1.27 billion, an 88% jump since its last filing. According to market observers, Goldman's positions reflect a shift in institutional outlook and investments in BTC and, to a lesser extent, ETH.
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