Bitcoin ETFs lost $1.2 billion in 8 days as markets swing amid latest economic data
Bitcoin ETFs saw the longest stretch of outflows last week since they debuted in January, as investors digested signals that the US economy was slowing.
Bitcoin ETFs saw net outflows for eight straight days through September 6, according to Bloomberg data, which amounts to $1.2 billion of flows out of bitcoin funds.
Bitcoin was hit last week along with other risk assets like stocks after investors digested the latest economic data. The world’s largest cryptocurrency lost more than 7.5% last week, trading below $53,000 on Friday.
The August jobs report showed the US added fewer jobs than expected, with 142,000 hires in the month compared to forecasts of 164,000.
The report, however, also showed a slight decline in the unemployment rate to 4.2%, down from a surprise increase to 4.3% in July that helped spark a market rout in early August.
That mixed labor market data and worries over future volatility around events like more unwinding of the yen carry are likely pushing investors to safe havens.
In a Monday note, Bank of America strategist Savita Subramanian recommended focusing on shares that can withstand higher volatility in the next few years, like utilities and real estate rather than tech stocks. Subramanian said the market will likely remain choppy for years to come.
Bitcoin and the wider crypto market are prone to volatility. The cryptocurrency could see greater swings in the leadup to the presidential election, too, as Republican nominee and former president Donald Trump continues to share his plans to make the US the “crypto capital of the planet.”
The steep outflows from bitcoin ETFs follow a mostly successful first year of trading for the funds, which received regulatory approval in January after years of deliberation by the US Securities and Exchange Commission.
The ETFs helped fuel a Bitcoin rally, with the coin up around 28% since the start of 2024, and notching a new all-time high earlier in the year above $73,000.
Bitcoin was trading at $57,065 on Monday, up by about 5%.
