Bitcoin is struggling to hold above $57,000, while bitcoin exchange-traded funds (ETFs) saw their biggest single-day outflows in four months this week as investors pulled their money in response to the overall market downturn.
Bitcoin's price was relatively flat on Thursday, up slightly by 0.2% to $56,900, according to data from Investing Saudi Arabia.
Meanwhile, Ethereum (ETH-USD) rose 0.7% to $2,412, while Cardano (ADA-USD) rose 0.8% to $0.32.
Huge withdrawals from Bitcoin ETFs
More than $287 million was withdrawn from 11 U.S.-listed bitcoin exchange-traded funds on Tuesday, marking the largest outflows since May. The selloff continued into Wednesday, with net outflows of $37 million.
The funds, which launched in January after receiving SEC approval, have seen investor interest wane in recent months. Spot bitcoin funds now manage about $52.6 billion in assets, down $10 billion from their peak.
Tuesday saw the largest selloff in the U.S. Bitcoin ETF market in four months. Fidelity saw the largest withdrawals, with investors pulling more than $162 million from its FBTC fund. Grayxel followed with $50.4 million in outflows, while ArkInvest saw $33.6 million in withdrawals. Bitwise also saw $25 million in outflows.
On Wednesday, Grayscale led outflows of $34.2 million, while Fidelity saw withdrawals of about $7.6 million. Bitwise saw net inflows of $9.5 million.
Investors await Fed rate cut
Bitcoin traders are awaiting the impact of a possible interest rate cut at the upcoming US Federal Reserve meeting in mid-September.
The US interest rate tracker available on Investing Saudi Arabia shows a 59% chance of a 25bp cut in September, and a 41% chance of a 50bp cut.
The tool also indicates a 49% chance that the central bank will cut rates by 75 basis points before its November meeting, which will be held two days after the US presidential election.
A low interest rate environment could make traditional financial assets like bonds and savings accounts less attractive, prompting investors to seek higher returns in riskier assets like stocks and Bitcoin.
