itcoin dipped below the $60,000 level Thursday morning after new data showed US inflation rose 2.9% in July. The drop came even as the S&P 500 reversed early losses to gain 1.2%, with the tech-heavy Nasdaq jumping 0.07%. Bitcoin has tended to track stocks this year during bouts of economic uncertainty.
Bitcoin ETFs See Biggest Outflow Since June
Investors pulled over $81 million from Bitcoin ETFs on Wednesday, the largest single-day withdrawal since mid-June. The Grayscale Bitcoin Trust (GBTC) led the decline with $56 million in net outflows.
Fidelity's Bitcoin fund (FBTC) saw $18 million exit, while funds from Ark Invest, Bitwise and others lost between $5-7 million each. Franklin Templeton and BlackRock's Bitcoin ETFs were the only ones to post inflows.
In contrast, Ether investment products scored a third straight day of inflows totaling $10 million. BlackRock's Ether ETF (ETHA) saw the largest single inflow of $16 million. Grayscale's Ethereum Trust suffered $16 million in outflows, though smaller Ether funds from Fidelity, Bitwise and others attracted fresh investment.
Traders Target $55K Bitcoin Price Amid Economic Fears
The latest inflation figures led Bitcoin to erase almost all of its gains from the past week. The cryptocurrency had bounced from the low $50,000s after June's consumer price report. Ether, Solana, Cardano and other major coins dropped between 2-4% as Bitcoin led the broader pullback.
Some traders think Bitcoin could now dip to $55,000 before its next sustained rally. Lingering macroeconomic fears have hit risk assets over the past year."New sell-off momentum remains the prevailing trading scenario at the moment," wrote FxPro's Kuptsikevich. "But policy shifts could flip investor sentiment back to bullish."
