Greenland Tensions Escalate: Bitcoin ETF Net Outflows Near $400 Million in a Single Day, BTC Faces Downward Pressure

GateNews
BTC-0,44%
ETH-0,92%
XRP-1,49%
SOL-2,69%

January 20 News, affected by the ongoing trade tensions related to Greenland, market risk aversion sentiment has rapidly increased. The US spot Bitcoin ETF experienced significant capital outflows on Monday, with a single-day net outflow approaching $400 million, indicating a clear shift towards caution among institutional investors.

Data shows that on that day, the total net outflow from US spot Bitcoin ETFs was approximately $395 million, ending a four-day consecutive period of strong capital inflows totaling over $1.8 billion. Previously, the market rebound had pushed Bitcoin prices above $95,800, but as geopolitical risks intensified, funds quickly reversed course.

Looking at individual products, Fidelity’s FBTC was the main source of outflows, with a net outflow of about $205 million in a single day. Meanwhile, Grayscale’s GBTC, Bitwise’s BITB, and Ark & 21Shares’ ARKB all saw varying degrees of capital withdrawal. Relatively, BlackRock’s IBIT still attracted about $15 million in net inflows, indicating some long-term capital still positioning at lower levels.

This capital withdrawal is closely related to potential trade frictions between the US and the EU. Last weekend, Trump made tough tariff remarks regarding Greenland, sparking concerns about renewed tensions in US-EU trade relations. Subsequently, the EU signaled possible retaliatory measures, further increasing macroeconomic uncertainty. Following the news, Bitcoin’s price quickly dropped from around $95,000 to below $92,500, and briefly fell to about $90,900.

BTC Markets analyst Rachael Lucas pointed out that the combination of trade conflict news and obstacles in US cryptocurrency legislation has significantly worsened market sentiment. She believes that if macro pressures persist, Bitcoin price forecasts could range between $67,000 and $74,000.

In other cryptocurrencies, capital fluctuations have been relatively moderate. Ethereum ETFs saw a slight net inflow of about $4.6 million, spot XRP funds inflowed approximately $1.1 million, while Solana ETFs experienced a net outflow of about $2.2 million, the first since December last year.

Presto Research deputy researcher Min Jung stated that current trade policies still lack clear details, and short-term uncertainty may continue to dominate the crypto market trend. Regarding Bitcoin ETF capital flows, institutional behavior has become an important indicator for assessing market risk appetite.

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