Bitcoin ETFs recorded a single-day net outflow of $484.9 million on Wednesday, marking the largest withdrawal since June 25. BlackRock's IBIT fund led the decline with $207.7 million in outflows, followed by Fidelity's FBTC with $105.1 million. Despite this, cumulative net inflows into these funds remain at $57.8 billion.
The market downturn coincides with rising macroeconomic pressures. The 30-year Treasury yield reached approximately 5.7%, the highest level since 2002, while Brent crude prices hovered around $100 per barrel. Investors are increasingly weighing the benefits of interest-bearing assets against non-yielding assets like Bitcoin amid persistent inflation concerns.
Federal Reserve meeting minutes released Wednesday indicate that most officials anticipate another rate hike before the end of the year. However, market participants remain skeptical, with CME Fedwatch and Myriad prediction markets pricing the probability of an October rate increase at 19.4% and 17% respectively.
Bitcoin's price dropped to a low of $81,749.83 on Thursday, representing a 6% decline from its weekly peak of $86,978. According to CoinGlass, the volatility triggered approximately $429 million in liquidations across the derivatives market within 24 hours, with 87.5% of those positions consisting of long bets.
