Bitcoin and Ethereum Spot ETFs Face $243 Million in Outflows Amid Geopolitical Tensions and Market Corrections

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Recently, Bitcoin and Ethereum spot ETFs experienced significant net outflows. On October 1, Bitcoin spot ETFs lost $243 million. Analysts believe political uncertainty is affecting the crypto markets, but they remain optimistic about future policies.

After a 5% drop on Tuesday, Bitcoin (BTC/USD) is down 0.3% to $61,680 on Wednesday afternoon. Analysts warn that if key support levels do not hold, further declines may occur.

Alex Kuptsikevich, a senior market analyst at FxPro, pointed out a technical factor that contributed to the selling. The day before, Bitcoin fell below its 200-day moving average, leading many investors to exit.

Experts are closely monitoring the $60,918 level, which is the 21-week moving average. Reports suggest that if Bitcoin trades below this level, traders should consider reducing their long positions.

The overall cryptocurrency market has seen a significant correction. The total market capitalization dropped 4.2% in the last 24 hours to $2.16 trillion. Ethereum (ETH/USD), the second-largest cryptocurrency, is down 1.5% to $2,449.

Kuptsikevich noted that Bitcoin found local support as it approached its 50-day moving average just above $60.3K. Geopolitical factors seem to have disrupted bullish trading, pulling Bitcoin away from the upper boundary of a multi-month channel.

This market downturn aligns with rising geopolitical tensions in the Middle East. The Israel Defense Forces reported that over 100 missiles were launched into Israel from Iran, with sirens sounding in major cities like Tel Aviv and Jerusalem.

This unrest has impacted both cryptocurrencies and traditional markets. Kuptsikevich stated, “Cryptocurrencies took a hit along with risk assets, while the dollar, gold, and oil rose sharply.”

On October 1, Bitcoin spot ETFs recorded a total net outflow of $243 million. This marked the first decline after eight consecutive days of inflows. Fidelity’s FBTC saw an outflow of $144 million, while ARKB had an outflow of $84.35 million. However, BlackRock’s IBIT ETF saw an inflow of $40.8 million, according to SoSo Value data.

Ethereum spot ETFs also faced outflows, totaling $48.5 million on the same day. ETHE and FETH experienced outflows of $26.6 million and $24.9 million, respectively.

Despite the current turbulence, some analysts remain optimistic about the long-term outlook for cryptocurrencies. Samir Kerbage, Chief Investment Officer at Hashdex, highlighted the growing political significance of crypto. He stated, “Crypto being part of the political conversation, especially from vice-presidential candidates in the United States, is a positive development.”

Kerbage also emphasized the emergence of the “crypto voter” and its potential impact on upcoming U.S. elections. “This growing political influence is something I wrote about earlier this year. I believe this technology, like the internet, is not political by nature and will become less partisan over time,” he noted.

As the crypto market navigates these uncertain times, investors and enthusiasts are looking forward to events like Benzinga’s Future of Digital Assets on November 19.

Stay tuned for more market news and data brought to you by Benzinga APIs.