Bitcoin recovers above $76,000 as ETFs record $430.2M outflows
Bitcoin back above $76,000 after Thursday drop
Bitcoin recovered above $76,000 on Friday. It had dropped below that level during Thursday's trading session in the US.
The fall erased a rebound seen on Wednesday after the elections. Bitcoin was still down more than 5.3% over the last 24 hours, the report said. The wider CoinDesk 20 index, which tracks other large cryptocurrencies, fell 6.28% over the same period.
Key numbers from Thursday
- US spot bitcoin ETFs had $430.2 million in net outflows on Thursday.
- Fidelity's FBTC accounted for $199.9 million of the outflows, and BlackRock's IBIT accounted for $105 million.
- The outflows reversed a $74.6 million inflow on Wednesday.
- Net redemptions for the week through Thursday reached $869.8 million.
- The Nasdaq fell 5.5% and the S&P 500 fell 4.3% on Thursday.
- $1.26 billion in leveraged crypto positions were liquidated in 24 hours, including $1.12 billion in long positions.
What the flow and liquidation data show
An ETF, or exchange-traded fund, is a fund traded on a stock exchange. US-listed spot bitcoin ETFs hold bitcoin and let investors buy exposure through a brokerage account.
SoSoValue data showed the $430.2 million in net outflows on Thursday. This left weekly net redemptions at $869.8 million through Thursday.
CoinGlass data showed $1.26 billion in leveraged cryptocurrency positions were liquidated in the last 24 hours. Long positions are bets that prices will rise, and they made up $1.12 billion of the total.
How analysts explained the selloff
FalconX and GSR analysts linked the selloff to concerns that a Democratic midterm sweep could slow construction of AI data centres. They said the concerns added to doubts about returns from heavy infrastructure spending.
Simon-Peter Massabni, head of business development at broker XS.com, said stock market selling was spilling into crypto. He said asset managers were liquidating alternative holdings, including crypto, to meet margin calls and reduce borrowing in their portfolios.
Signs of weak demand before the fall
The Wednesday recovery had already shown signs of fragility, the report said. Bitcoin futures open interest, which measures the total value of outstanding futures contracts, stayed broadly flat during the rebound.
Bitcoin also traded at a discount on Coinbase compared with Binance. The report described this as a sign of subdued buying demand in the US.
What is confirmed and what is still unclear
Confirmed figures in the report include the ETF outflows, the stock market falls, the 24-hour declines for bitcoin and the CoinDesk 20 index, and the liquidation total.
The link to AI data-centre concerns is an analyst explanation reported by CoinDesk. The report does not confirm that this was the sole cause of the selloff.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.