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US Spot Bitcoin ETFs See $1.2 Billion In Net Outflows Over Eight Days

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U.S. Spot Bitcoin ETFs See $1.2 Billion in Net Outflows Over Eight Days

The 11 spot Bitcoin exchange-traded funds (ETFs) in the US have witnessed combined net outflows of $1.2 billion over an eight-day period, according to data compiled by Bloomberg.

The outflow period, which continued from 30 August to 6 September, marks the longest stretch of outflows since spot BTC ETFs launched on January 10. The decline coincides with Bitcoin’s price struggles during early September.

Bitcoin’s price dropped from a high of $64,668 on 26 August to a low of $53,491 by 7 September, representing a 17.28% fall in just two weeks. As of now, the leading cryptocurrency is trading at around $55,150, up by 1% over the past day.

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Bitcoin Historically Performs Poorly In September

Historically, September has been a tough month for Bitcoin, as its performance tends to weaken during this period, a trend known in the cryptocurrency community as “Rektember.” In contrast, “Uptober” refers to the often positive price action seen in October.

Despite Bitcoin’s recent volatility, some analysts remain optimistic about its long-term potential. Bitcoin hit a two-week low at the start of September, shedding more than 2%. However, financial experts such as Suze Orman are still bullish on Bitcoin’s future.

In a recent CNBC interview, Orman stressed that Bitcoin remains a worthwhile investment, particularly for younger generations. She believes that as younger investors accumulate wealth, their interest in Bitcoin will contribute to future price increases.

While these outflows have made headlines, crypto-related ETFs continue to dominate the ETF market. Out of the 400 new ETFs launched in 2024, the top four are all spot Bitcoin ETFs. Notable offerings include BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, and Bitwise’s Bitcoin ETF Trust.

In addition to Bitcoin-based ETFs, Ethereum has also made an impact. The iShares Ethereum Trust ETF became the seventh-largest ETF launch in 2024, surpassing $1 billion in inflows as of August. Despite the short-term setbacks, crypto remains a major force in the ETF landscape.

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Bitcoin Network Activity Hits Lowest Level In Three Years

The Bitcoin network has seen a sharp decline in activity, reaching its lowest levels since 2021. According to onchain analytics platform CryptoQuant, there has been a widespread “disinterest” in the crypto market, with Bitcoin transaction volumes dropping significantly.

In a recent Quicktake blog post, CryptoQuant revealed that active addresses on the Bitcoin network, which had peaked at nearly 1.2 million in mid-March, have now fallen to 838,000.

By late August, the number of active addresses dropped even further to just 744,000, marking the lowest daily count since 2021. CryptoQuant contributor Gaah noted that the total number of active addresses in 2024 mirrors figures last seen when Bitcoin was trading around $45,000.

He explained that fewer active addresses point to a decline in network activity, signaling reduced transaction volumes and a potential waning interest in the network’s usage.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Ruholamin Haqshanas is an accomplished crypto and finance journalist with over three years of experience. He has been featured in various high-profile outlets, including Cryptonews.com, Investing.com, 24/7 Wall St, and Business2Community.

View all Posts by Ruholamin Haqshanas

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