Bitcoin and Ethereum Spot ETF Outflows Trigger Market Downturn

The cryptocurrency market is witnessing a significant downturn as both Bitcoin and Ethereum face substantial price drops due to large outflows from their respective spot ETFs.

Bitcoin and Ethereum prices continue to fall as both cryptocurrencies face large outflows from their respective spot ETFs.

Over the past 24 hours, Bitcoin’s price has dropped by 5.8% to reach $56,573, while Ethereum has seen a 5% decrease to trade at $2,400. Both cryptocurrencies are facing heavy selling pressure and bearish sentiment in the market.

Bitcoin ETF Outflows Impact Price

On September 3, Bitcoin spot ETFs saw a total net outflow of $288 million, marking the fifth consecutive day of net outflows from the fund. This sustained withdrawal of funds reflects a growing bearish sentiment among investors.

The Grayscale Bitcoin Trust (NYSE: GBTC) saw a single-day outflow of $50.395 million, while Fidelity’s Bitcoin ETF (NYSE: FBTC) recorded an even larger outflow of $162 million.

The current trade price of #Bitcoin is $56,502 pic.twitter.com/4bbeSz1NA4

These significant outflows had a direct impact on Bitcoin’s market price, which has crashed to $56,573, down 5.8% in the last 24 hours. The total net asset value of Bitcoin spot ETFs now stands at $52.689 billion, underscoring the scale of the capital flight from Bitcoin investments.

Ethereum ETF Outflows Lead to Price Decline

Ethereum was not spared from the bearish trend. On September 3, the total net outflow of Ethereum spot ETFs amounted to $47.3994 million. Grayscale’s Ethereum ETF (NYSE: ETHE) led the outflows with $52.3103 million leaving the fund.

In contrast, Fidelity’s Ethereum ETF (NYSE: FETH) managed to attract a modest inflow of $4.9109 million, but this was not enough to offset the overall negative sentiment.

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Current trade price of #Ethereum is $2,395 pic.twitter.com/drSNe9S2QJ

As a result, Ethereum’s price has dropped to $2,400, a 5% decline over the last 24 hours. The current total net asset value of Ethereum spot ETFs is $6.758 billion, indicating a challenging environment for Ethereum investors as well.

Market Sentiment and Outlook

The recent outflows from both Bitcoin and Ethereum ETFs highlight a broader market concern about the short-term prospects of these leading cryptocurrencies. The significant sell-off, particularly in Bitcoin, suggests that investors are uneasy, perhaps due to wider economic concerns or a shift in risk appetite.

The continuous decline in prices over the last 24 hours reflects the bearish sentiment that has gripped the market. Both Bitcoin and Ethereum are now trading at levels that have alarmed investors, prompting concerns about further declines if the outflows continue.

The current Fear & Greed Index is 27, which means fear is at peak and this low index is a great indication for people to invest some money in top flagship cryptocurrencies.

Current Fear & Greed Index is 27 pic.twitter.com/kaTY9BoV6l

Read also: American securities regulatory body fines $225k against crypto advisory firm Galois Capital Management