Bitcoin ETFs Face Mounting Pressure as Prices Plunge Below Key Threshold

The cryptocurrency sector faces turbulent conditions as Bitcoin’s value drops below the critical $100,000 level, reaching multi-month lows. This downturn has placed significant strain on the Grayscale Bitcoin Trust, which confronts substantial investor withdrawals during an already challenging market period.

Investment products tracking Bitcoin are experiencing notable capital flight. Collective net outflows from major Bitcoin ETFs have reached $1.3 billion since late October. Market data reveals that nearly $2 billion has exited spot Bitcoin ETFs within just five trading days, with Grayscale Bitcoin Trust alone witnessing approximately $50 million in withdrawals on Monday.

This capital exodus coincides with deteriorating market sentiment. The Fear-and-Greed Index currently reflects “extreme fear” among investors following Bitcoin’s Read more...