The biggest net outflow day for Bitcoin ETFs resulted in a crash below $96,000

Bitcoin’s price action over the past few days has been nothing less than a substantial correction that pushed it south by about thirteen thousand.

Powell’s comments made during the last FOMC meeting appear to have spooked US investors as they pulled over $670 million out of Bitcoin ETFs in just one day.

red memory

After cutting key interest rates by another 25 basis points, Fed Chairman Powell warned that 2025 may not see as many cuts due to alarming numbers on the inflation front. To make matters worse for BTC and altcoins, he added that the central bank is not allowed to buy and store bitcoins for itself, which contrasts with one of Donald Trump’s many pro-crypto promises.

The effects were immediate as the price of the main cryptocurrency dropped from over $105,000 to $98,000 immediately on Wednesday evening. After jumping to nearly $103,000 on Thursday, bears retook control of the market and pushed it south to a multi-day low below $96,000, leaving more than a billion in liquidations.

This occurred during US trading hours. Data from FarSide indicates that US investors became fearful of their allocations to riskier assets like BTC and began pulling funds out of Bitcoin ETFs. In fact, December 19 turned out to be the worst day in terms of daily outflows in the nearly year-long history of ETFs.

In total, $671.9 million was withdrawn from financial vehicles, with Fidelity’s FBTC and Grayscale’s BTC leading the pack: $208.5 million and $188.6 million, respectively.

Even BlackRock’s IBIT, which continues to break records, failed to attract any new funding, but at least it didn’t see any major pullbacks, ending the day at $0.0.

Also Ethereum ETFs in red

Ethereum ETFs were on a roll for nearly a month, not seeing a single day of net outflows since November 21st. However, the landscape around it also changed, with investors pulling out $60.5 million.

Although the amount is more than 10 times lower than that of Bitcoin ETFs, the price of ETH was not spared. The asset is down more than 9% in the past day and is struggling at $3,350 after its latest rejection at $4,000.

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