Bitcoin ETFs under pressure: What is behind the outflow of billions of dollars?

Bitcoin-Linked ETFs Experience Fund Outflows

In recent days, American exchange-traded funds (ETFs) linked to Bitcoin have seen significant fund outflows amounting to as much as $1.2 billion. This is a surprising trend in the cryptocurrency market, especially considering the sector’s previous development. According to Bloomberg’s analysis, these outflows are the largest since January 2024, which marks the inception of ETFs associated with cryptocurrencies.

Bitcoin Value Decline

Alongside the outflows from ETFs, a noticeable decline in the value of Bitcoin has been observed. Over the course of two weeks, the price of the world’s most popular cryptocurrency dropped by over 17%, decreasing from $64.6 thousand on August 26 to $53.4 thousand on September 7. This significant correlation draws investors’ attention to the volatility of the digital asset market.

Political Tensions and Investment Outflows in the USA

The major capital outflows related to Bitcoin primarily concentrated in the United States. The current political tensions surrounding the upcoming presidential elections could have a substantial impact on investor behaviors. This phenomenon not only reflects the risks associated with the cryptocurrency market but also demonstrates how external factors can strongly influence this industry.

Price Forecasts and Uncertainties

Analysts at Bernstein predict that in the event of Donald Trump’s victory in the presidential elections, the price of Bitcoin could soar up to $90 thousand by the end of the year. At the same time, there is uncertainty concerning the planned cryptocurrency platform World Liberty Financial (WLF), founded by Trump’s sons. There is a risk that this platform may not turn out to be as decentralized as initially envisaged, raising doubts among investors.

The Future of Cryptocurrencies in the USA

Examining the current market situation, it appears that a clearer picture of the future of cryptocurrencies in the USA may emerge only after the conclusion of the presidential elections. The ongoing fund outflows related to ETFs could be closely interlinked with this pivotal political event, which has the potential to significantly influence the shaping of the digital asset market.

The Cryptocurrency Sector – Global and Unstable

Yaroslav Bogdanov, a cryptocurrency expert, emphasizes that the cryptocurrency sector is too global and unstable to rely entirely on the situation in just one region. This is an important observation that showcases how the cryptocurrency market is exposed to numerous external factors, both global and local, making its development difficult to predict and requiring investors to adopt a cautious approach.