Record Bitcoin ETF Outflows Shake Crypto Market

The cryptocurrency market witnessed a dramatic shift on December 19 as Bitcoin ETFs recorded their largest single-day outflows of the year, totaling $671.9 million.

The sell-off triggered a cascade of reactions across the market, with Bitcoin’s value retreating to approximately $94,200.

Among the notable losses, Grayscale’s GBTC saw a reduction of $208.6 million, while ARK Invest’s ARKB experienced withdrawals of $108.4 million, according to data from Farside Investors. This activity wiped out much of the progress seen earlier in December, with total Bitcoin ETF assets dropping from $121.7 billion on December 17 to $109.7 billion just two days later.

The outflows didn’t stop with Bitcoin ETFs. Combined withdrawals from crypto ETFs reached a staggering $732.4 million. Despite these losses, Bitcoin managed to maintain its dominance, accounting for 57.4% of the market. However, over $1 billion in liquidations across various platforms reflected the severity of the downturn, leaving analysts scrambling to explain the sudden shift.

Economic uncertainty loomed large as investors adjusted to recent developments in U.S. monetary policy. Federal Reserve Chair Jerome Powell dampened expectations of aggressive rate cuts, suggesting only two reductions in 2025. This cautious approach impacted not only cryptocurrencies but also traditional markets, with the S&P 500 registering declines.