“US Spot Bitcoin Falls ETFs Massive $938M outflow hits US spot Bitcoin ETFs as Bitcoin tumbles below $90K, alarming investors.”

US Spot Bitcoin ETFs saw a huge $938 million outflow, the biggest day ever. This happened as ETFs faced sell-offs and liquidations grew. Bitcoin then fell below $90k.

Bitcoin’s failure to stay above a certain price led to big losses for US Bitcoin ETFs. In February, they lost about $2.4 billion. This happened every day, with each user contributing to the loss.

Bitcoin is now trading below $90,000. This has led to the biggest daily net outflows for US-spot Bitcoin ETFs.

According to Coin Glass, the 11 Bitcoin BTC $88, 652 funds together had a net outflow of $937.9 million on February 25. This is the sixth day in a row that withdrawals have happened.

What is causing Bitcoin to lose popularity?

Tuesday saw Bitcoin fall below $90,000, its lowest since mid-November. This was due to Donald Trump’s trade tariffs and growing industry issues. The post-election euphoria that followed his return to the White House was short-lived.

ETF withdrawals and market volatility?

Disappointing economic statistics and a decline in the Nasdaq 100 have intensified the selloff of Bitcoin. This is part of a broader flight from risky assets. The 10-year Treasury yield has been falling for five straight days, leading investors to safer assets like bonds.

Significant withdrawals are happening from ETFs that drove Bitcoin’s post-election spike. The Fidelity Wise Origin Bitcoin fund is withdrawing close to $250 million. The biggest spot Bitcoin fund is experiencing an unusual outflow of $158 million. In February, a record $956 million was pulled out of US-listed spot Bitcoin ETFs.

The selloff was further exacerbated in futures markets. Coin reports that over $1.34 billion worth of bullish cryptocurrency contracts were liquidated in a single day.

US Sport Bitcoin ETFs see the largest single-day outflows of $938 million.

• As Bitcoin plummeted below $90,000, US Spot Bitcoin ETFs witnessed the highest outflow ever, totaling $938 million.
• Bitcoin’s inability to maintain a set price resulted in significant losses for the US Bitcoin ETFs, which lost almost $2.4 billion in February.
• Bitcoin is currently selling under $90,000. This has resulted in the most daily net outflows for US-based Bitcoin ETFs.
• On February 25, the 11 Bitcoin BTC $88, 652 funds had a net outflow of $937.9 million, marking the sixth day in a succession of withdrawals.
• Bitcoin’s appeal is waning, with the cryptocurrency dropping below $90,000, its lowest level since mid-November.
• Economic data and a drop in the Nasdaq 100 have accelerated the selloff of Bitcoin, which is part of a larger flight from risky assets.
• Significant withdrawals are occurring from ETFs that fuelled Bitcoin’s post-election surge, with the Fidelify.
• Futures markets compounded the selloff, with more than $1.34 billion in bullish cryptocurrency contracts sold in a single day.
• The recent fall in Bitcoin raises concerns about the present boom’s long-term sustainability.
• Most Bitcoin ETF investors are hedge funds seeking arbitrage. returns rather than long-term investors.

Setbacks Specific to the Industry Increase Pressure

A slew of catastrophes in the cryptocurrency space have added to the pressure. This includes Bitcoin a record-breaking attack on the Bybit exchange controversy over meme coins and Argentina’s president, Javier Milei. North Korean affiliates stole $1.5 billion worth of Ether from Bybit and have started laundering the money.

The break shows how sophisticated North Korean cybercriminals are becoming. The dismal performance of meme currencies introduced by Trump and his wife Melania has also cast doubt on his pro-crypto views.

The Bybit breach is the latest in a series of incidents that have brought back unpleasant memories for many in the cryptocurrency business.

ETF exodus follows the path of the cryptocurrency market. After reaching an intraday high of almost $92,000, Bitcoin has fallen 3.4% in the day. It reached a 24-hour low of $86, 140.

Bitcoin fell below $90,000 on Tuesday, reaching its lowest level since mid-November. This was due to the post-election surge that retreated under pressure from his trade tariffs and growing industry issues.

In the two weeks before February 21, the Bitcoin ETFs had a cumulative net outflow of more than $1.14 billion. This was the largest two-week withdrawal period since they started trading on January 11, 2024.

Digital asset investing company Nexo dispatch analyst IIiya Kalchev says the latest dip in Bitcoin raises questions about the durability of the current boom.

As the post-election surge retreated under pressure from his trade tariffs and growing industry issues, Bitcoin fell below $90,000 on Tuesday.

It reached its lowest level since mid-November at 9:36 a.m. in New York; the cryptocurrency fell as much as 7.6% trading at around $88,800. An index that tracks the leading tokens is on course for its worst four-day decrease since early August. Other significant digital assets like Ether, XRP, and Solana also witnessed steep drops.

The Fidelity Wise Origin Bitcoin Fund (FBTC) led the day With $344.7 million in withdrawals, setting a new record. The iShares Bitcoin Trust (IBIT) from Black Rock followed with a $164.4 million outflow.

Bitwise’s Bitcoin ETF (BITB) lost $88.3 million. Grayscale’s two funds lost $151.9 million, split between $85.8 million from its Bitcoin Mini Trust ETF (BTC) and $66.1 million from its Grayscale Bitcoin Trust (GBTC).

Despite four days of net inflows, the 11 ETFs have seen around $2.4 billion leave them his month.

All-time spot Bitcoin ETF flows, Blackrock Bitcoin ETF.

Nate Geraci, president of the ETF store, said on February 26 X, “I’m still amazed at how much Trad Fi hates Bitcoin and crypto.”

He noted, “There are huge victory laps at every downturn.” “I hate to tell you this but drawdowns will not go away, no matter how severe.

Most Bitcoin ETF investors are hedge funds looking for arbitrage profits, not long-term investors, analysts say. Markus Thielen, head of research at 10x research, and Arthur Hayes, co-founder of BitMEX, agree.

When Trump’s Triff War started, Bitcoin’s price dropped 18%. In contrast, the price of gold increased by 8% at the same time.

Related: Hayes believes that Bitcoin would plummet to $70,000 due to ETF withdrawals. He noted that many IBIT investors are hedge funds looking for higher yields than short-team US Treasurys.

These funds will repurchase CME futures and unwind their IBIT bets when Bitcoin’s price drops, Hayes said.

Hayes’ studies from February 24 found over half of the spot Bitcoin ETF investors are in the ETF arbitrage game. He claimed that the unwinding process is “market-neutral” because it involves selling ETFs and buying Bitcoin futures at the same time.

Tariff measures and waning consumer food mood have caused a three-day drop in the New York stock market. There will likely be a one-month grace period for 25% tariffs on Canada and Mexico as part of President Trump’s tariff strategy.

The University of Michigan’s field consumer sentiment index fell from 71.7 to 64.7. On the US stock market, 11 Bitcoin spot ETFs had a net outflow of 516.4 million dollars, the most daily net outflow since August 8.

According to the IBK Industrial Bank of Korea Economic Research Institute, “Investing in gold, an inflation hedge tool, has become more appealing as Trump’s tariff policy stimulates prices and is likely to make inflation re-rising a reality.”

A significant contributing cause to the price rise is the ongoing gold purchases made by central banks in developing nations, such as China and Turkey, as a hedge against the dollar.

Following the Russia-Ukraine conflict, the West tied up Russia’s foreign dollar money. Additional developing nations diversified their holdings by converting the dollar into gold.