So much for “Uptober.” Historically a strong month for Bitcoin prices, this year started with a flood of funds flowing out of Bitcoin exchange traded funds (ETFs).
Investors have cashed out a total of $361.2 million from these products, with three consecutive days of losses so far in October, according to data from London-based investment firm Pharside Investors.
The outflow came after a week of strong inflows. Investors pumped more than $1 billion into the fund last week.
October, dubbed “Uptober” by some traders, is commonly known as the month of higher crypto prices in the past, following September, which is historically a cold month for Bitcoin and other major assets. . However, after a rough start, Bitcoin ended up having a strong September this year.
Bitcoin’s price briefly fell below $60,000 on Thursday. It is now around $62,200, up more than 3% on the day.
Bitcoin ETFs, which were approved for trading in the U.S. in January, led to the year’s biggest and oldest asset rally.
In March, the coin sold for $73,737 as investors who had previously been reluctant to trade in crypto assets poured cash into it through a new regulated investment vehicle traded on stock exchanges. It reached an all-time high.
Wall Street giants like BlackRock, Fidelity, and VanEck all have Bitcoin funds available to investors through brokerage accounts.
But the rapid flow of money has stalled in recent months. reason? Analysts told Decrypt this week that geopolitical tensions are not helping. During times of political instability, investors tend to turn to “safe haven” assets such as gold and government bonds.
However, it’s only the first week of “Uptober.” Will investor psychology change?
Edited by Andrew Hayward
Daily debriefing newsletter
Start each day with the current top news stories, plus original features, podcasts, videos, and more.
