Bitcoin ETFs Experience First Outflows Since Trump Era Amid DeepSeek AI Concerns
Bitcoin ETF Outflows Hit $457.48 Million on January 28
Bitcoin exchange-traded funds (ETFs) in the United States have recorded their first outflows since the tenure of former President Donald Trump. This shift comes amid growing concerns over the global adoption of the Chinese AI application DeepSeek, which has sparked uncertainty among investors, leading to a significant sell-off in the cryptocurrency market.
Breakdown of Bitcoin ETF Outflows
According to data from SoSoValue, spot Bitcoin ETFs witnessed outflows totaling $457.48 million on January 28, marking the end of a seven-day inflow streak that had accumulated more than $4.2 billion.
Top Bitcoin ETFs with the Largest Outflows
The biggest outflows were recorded in the Fidelity FBTC fund, which lost $268.59 million. The Grayscale GBTC fund followed, experiencing outflows of $108.47 million. Additionally, Bitwise BITB and ARK 21Shares ARKB saw withdrawals of $88.57 million and $50.11 million, respectively. The VanEck HODL fund also recorded a modest outflow of $5.68 million.
BlackRock’s Bitcoin ETF Bucks the Trend
Despite the sell-off, BlackRock’s IBIT ETF stood out as the only fund to record inflows, attracting $63.94 million. This pushed its total cumulative inflows to nearly $40 billion since its launch.
Bitcoin Price Plunge: What’s Behind the Market Sell-Off?
This shift in Bitcoin ETF flows coincided with a sharp drop in Bitcoin’s price, which fell from $105,000 to a low of $97,855. Over $1 billion in crypto positions were liquidated in the market. Analysts attribute this downturn to investor sentiment shifting towards a “risk-off” approach following the rise of DeepSeek, China’s AI-driven competitor to ChatGPT. The platform’s success has raised concerns about U.S. dominance in artificial intelligence, contributing to broader market fears.
Conclusion
The recent Bitcoin ETF outflows highlight growing market uncertainty amid global AI developments. As investors reassess risk in light of emerging technological shifts, the cryptocurrency market remains highly volatile.
Read more: Major Bitcoin ETF Liquidations Sparked by DeepSeek AI Concerns – Source