On Tuesday, Bitcoin ETFs in the U.S. experienced their largest outflow since Sept. 3, totaling $242.6 million, as geopolitical tensions in the Middle East escalated. Over the course of the day, Bitcoin's price dropped considerably, hitting a low of $60,300. This decline erased nearly all gains accrued since the Federal Reserve's interest-rate cut last month and broke an eight-day streak of inflows into the ETFs.
The escalation of hostilities in the Middle East, highlighted by Iran's missile strikes on Israel, has severely impacted Bitcoin ETFs amidst rising uncertainties. In light of the retaliatory threats made by Israeli Prime Minister Benjamin Netanyahu, investors seem wary, leading to significant outflows from Bitcoin as its price fell and erased nearly all previous gains. Such geopolitical events can create a volatile market environment affecting cryptocurrency performance.
Bitcon's decline to $60,300 has left it with a loss of 2.6% since the beginning of October, disappointing those who had anticipated a showing of strength during 'Uptober,' a period historically marked by growth in Bitcoin valuation. With the current geopolitical tensions, the anticipated positive trends for this time might be overshadowed by prevailing uncertainties.
Moreover, Ether ETFs also faced challenges, seeing outflows of $48.5 million on the same day, marking their worst performance since September 23. This trend suggests that the negative sentiment around Bitcoin's declining performance is extending to other cryptocurrency assets, as investors remain cautious about market conditions.
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