Bitcoin Loses ETF Support, Enters Neutral Phase Ahead of Fed Decision
Wintermute analysts have shifted their market assessment from moderately optimistic to neutral. The reason is that outflows from Bitcoin ETFs turned negative on a weekly basis for the first time since June, indicating a loss of ETF support.
The experts noted that $463 million was withdrawn from spot Bitcoin ETFs during the shortened holiday week, marking the first week of net outflows since June. This shift in demand is significant, as ETF inflows were one of the key drivers behind Bitcoin's rise from $63,000 to $82,000.
Wintermute points out that when ETF-driven demand flipped the other way, Bitcoin lost about $3,500. Without a recovery in ETF-driven demand, the leading cryptocurrency will likely continue trading within its current range of $76,000-$82,000.