Bitcoin ETFs recorded their largest single-day outflows on Wednesday, with over $560 million leaving the top funds, sparking concerns among investors and sending ripples across the crypto market. The outflows, led by Grayscale’s GBTC with more than $320 million, mark a sharp reversal from the previously bullish sentiment that had driven Bitcoin to highs above $70,000 earlier this year.
Contributing to the exit is the Federal Reserve’s continued hawkish stance, dampening investor enthusiasm for risk assets, including crypto. The negative inflows also suggest growing caution among institutional investors who had initially flocked to Bitcoin ETFs following their January approval.
Despite Ethereum’s rally earlier this month amid optimism around spot ETH ETFs, the broader crypto market is showing signs of fatigue. DeFi tokens and altcoins also struggled, as total value locked (TVL) across decentralized finance platforms dipped slightly in the last 24 hours, reflecting reduced market activity.
Bitcoin (BTC) briefly slipped below $65,000 during Wednesday’s sell-off, adding pressure to a market already wary of macroeconomic headwinds. With traders now recalibrating their short-term outlook, analysts warn that further downside could be on the horizon if ETF outflows persist.
Crypto investors will closely watch how ETF issuers and institutions respond in the coming days. Meanwhile, Bitcoin, Ethereum, and key DeFi protocols may continue to trade sideways as market participants await clearer signals in an increasingly volatile environment.
