August 2024 began on a highly bad note for several asset classes, including stocks and cryptoassets as the global financial markets saw trillions of dollars wiped out in a day on rumors of a potential worldwide recession. Approximately $2.9 trillion was wiped out from the U.S. stock market on 2 August 2024, the highest single-day downturn since March 2020 during the COVID-19 pandemic.
The global crypto market capitalization also dropped by roughly $147 billion, from $2.483 trillion on Thursday to $2.287 trillion on Friday, according to Coingecko data. The crypto market is yet to recover from this downturn as bitcoin (BTC) and several altcoins remain bearish following heavy outflows from U.S. spot BTC exchange-traded funds (ETFs) amongst other factors.
U.S. spot bitcoin ETFs record biggest daily outflow in 3 months.
The biggest daily net outflow from spot BTC ETFs trading in the U.S. was recorded on 2 August 2024, since 1 May 2024, which is over three months ago and over 60 trading days. The outflow level on May 1 was $563.77 million.
According to SoSoValue data, the 12 U.S. spot BTC ETFs registered a single-day net outflow of $237.45 million and a daily net inflow of $17.51 billion on Friday. This massive outflow—fueled by several factors such as the recent global recession rumours—marked the fourth highest since the launch of the BTC ETFs in the U.S. in January 2024.
As of August 2, the highest outflow of $104.1 was logged by the Fidelity Wise Origin Bitcoin Fund (FBTC). ARK 21Shares Bitcoin ETF (ARKB) accounted for the second-highest daily net outflows on Friday, with $87.68 million withdrawn from the Fund. However, ARKB boasted an inflow of $2.48 billion on the same day.
While the Grayscale Bitcoin Trust (GBTC) logged an outflow of $45.95 million, its Bitcoin Mini Trust was among the two spot BTC ETFs to see an inflow on August 2, adding a modest $9.88 million to the Fund’s net assets. The other ETF that had a positive day was BlackRock’s iShares Bitcoin Trust (IBIT), which saw $43 million in inflows.
As per SosoValue data, the Bitwise Bitcoin ETF (BITB) and VanEck’s Bitcoin ETF (HODL) also registered outflows of $29.38 million and $23.05 million, respectively. Meanwhile, the remaining five funds, including Franklin Templeton, Hashdex, Valkyrie, Invesco and WisdomTree logged no change as of August 2.
BTC slumps below $60,000
Since hitting $70,000 in July end, BTC has remained in a downtrend. Its bearish momentum heightened over the weekend amid the high ETF daily outflows and rumors of a potential global recession, pushing BTC’s price below the $60,000 mark on Saturday. The 2024 U.S. presidential elections have also contributed to the recent crypto market volatility.
Bitcoin slumped to about 58,900, at the time of writing.
While traders are hopeful for a sharp rebound sooner than later, it bears noting that a significant Chicago Mercantile Exchange (CME) gap of approximately $3,000 exists between the $58,000 and $61,000 BTC price levels. This gap may have to be filled first before the leading cryptocurrency resumes a rally toward higher levels above $70,000.
Ndianabasi Tom A crypto journalist and content writer who has been talking about cryptocurrency and blockchain technology since 2018, Ndianabasi is a Writer at Crypto Asset Buyer (CAB).
