“Enormous Outflows” From Largest Bitcoin ETF Triggered Bitcoin Crash?
Is this what’s to blame for the drop into the $17K region we saw on Saturday?
‘Enormous Outflows’ From Largest Bitcoin ETF May Have Triggered BTC Crash
“The world’s largest bitcoin (BTC) spot exchange-traded fund lost half of its assets under management last Friday, which might have exacerbated bitcoin’s crash on Saturday.
The Purpose Bitcoin ETF saw an outflow of 24,510 bitcoins on Friday, the most severe redemption in a single day since the fund made its debut on the Canadian Stock Exchange in April 2021, according to the Norway-based Arcane Research.
The outflows mean that the fund had to sell about $500 million in BTC at Friday’s price, adding to the selling pressure in an already shaky crypto market, Arcane wrote in a report.
‘The enormous outflows are likely caused by a forced seller in a huge liquidation,’ Arcane analyst Vetle Lunde wrote. ‘The forced selling of the 24,000 BTC could have triggered BTC’s move down towards $17,600 this weekend.’”
