on 1st of April Bitcoin spot ETFs collectively experienced net outflows of $85.84 million. Among notable moves, Grayscale ETF GBTC recorded a single-day net outflow of $302 million.
In comparison, BlackRock ETF IBIT recorded a net inflow of $165 million, while Fidelity ETF FBTC witnessed a net inflow of $43.99 million. Cumulative net inflows for Bitcoin spot ETFs reached an impressive $12.04 billion, according to data from Farside Investors, demonstrating continued investor interest in this asset class.
Amid these negative flows, Bitcoin price entered a sharp correction, dropping 5.5% to $66,000. With Bitcoin, broader cryptocurrency Even the market witnessed strong liquidations in the last 24 hours.
Interestingly, this sharp correction came just before the Bitcoin halving event, which will take place in just 19 days. This correction undermined analysts’ expectations that the BTC price would reach $75,000 by halving.
Fed’s Monetary Policy Faces Challenges
As April begins, the crypto market pullback indicates that the momentum of the recent strong rally, particularly characterized by BTC’s rise to all-time highs, is waning. This shift in sentiment reflects a more cautious stance prevailing in global markets due to ongoing inflationary pressures in the United States. As a result, investors are lowering their expectations for looser monetary policies and interest rate cuts from the Federal Reserve.
Stefan von Haenisch, chief trading officer of OSL SG Pte in Singapore, stated that the expectation that the Fed will lower interest rates has resonated in the cryptocurrency space. This sentiment is evidenced by a broad sell-off observed as the week progressed, affecting various sectors in the crypto market. In particular, sectors that have outperformed Bitcoin in the last six months, such as meme coins, are significantly affected by this cautious mood.
