- Record Outflows: U.S.-listed Bitcoin spot ETFs saw a near-record $570 million withdrawn on January 8.
- Price Tumbles Below $100K: Bitcoin dropped below the key $100,000 level, triggering $517,000 in liquidations in just one hour.
- Fed Rate Hike Fears: Strong U.S. economic data has fueled speculation about more interest rate hikes, pressuring Bitcoin.
- Government Bitcoin Sale: The U.S. sold off $6.7 billion worth of Bitcoin, adding to the market turmoil.
Bitcoin’s rocky start to the year just got rougher. On January 8, investors pulled nearly $570 million from U.S.-listed Bitcoin spot ETFs—a move that sent shockwaves through the market. According to data from Farside, this is the second-largest single-day outflow ever, just shy of the $671.9 million record set last December.
https://x.com/Ashcryptoreal/status/1866788718696337846
Leading the withdrawals was Fidelity’s Wise Origin Bitcoin Fund, which saw $258.7 million exit in one day. That’s the largest outflow the fund has ever recorded, underscoring the uncertainty currently gripping Bitcoin investors.
A Brutal Price Drop
The withdrawals coincided with a sharp drop in Bitcoin’s price. Falling below the $100,000 mark—a level many see as psychologically significant—Bitcoin briefly hit $92,500. This drop triggered a wave of liquidations, with $517,000 worth of Bitcoin wiped out within an hour, as reported by CoinGlass.
What’s driving the sell-off? Analysts point to stronger-than-expected U.S. economic data, which has reignited fears that the Federal Reserve could hike interest rates again this year. “The market is bracing for tighter monetary policy, and Bitcoin is feeling the pressure,” said Ryan Lee, chief analyst at Bitget Research.
As of now, Bitcoin has regained some ground, trading at $93,494, according to CoinMarketCap. But the damage has been done, with traders on edge as they try to navigate the market’s next move.
The Government Cashes Out
Adding fuel to the fire, the U.S. government offloaded its remaining cryptocurrency holdings—69,370 Bitcoins worth around $6.7 billion. Blockchain data from Arkham Intelligence shows the government’s crypto wallet was drained to zero on January 8, further spooking the market.
This massive selloff comes just weeks after Bitcoin briefly hit $102,500, a high point for early January. The failure to maintain that momentum has left the cryptocurrency struggling to regain its footing.
Sentiment Stays Surprisingly Positive
Despite all the chaos, investor sentiment hasn’t tanked. The Crypto Fear & Greed Index still shows a “Greed” level of 69. That’s a slight dip from December’s “Extreme Greed” score of 78, but it’s far from bearish territory.
https://x.com/DaanCrypto/status/1479061718122872838
Some traders are taking a wait-and-see approach. Daan Crypto Trades, a well-known analyst, commented on X (formerly Twitter) that January often brings unpredictable price swings. “It’s been a shaky start to the year, but that’s not unusual,” he said.
