Bitcoin News: Bitcoin ETFs See Record Daily Outflows Amid Price Drop and Macroeconomic Concerns

Bitcoin ETFs Experience Highest Net Outflow Day

Spot Bitcoin exchange-traded funds in the U.S. recorded their highest daily outflows yesterday, totaling $937.78 million, as Bitcoin dropped below $90,000. This triggered a risk-off sentiment among investors amid growing macroeconomic concerns. According to data from SoSoValue, the 12 spot Bitcoin (BTC) ETFs saw this significant outflow on Feb. 25, surpassing the previous record of $680 million in net outflows on Dec. 19, 2024. The majority of outflows came from Fidelity’s FBTC with $344.65 million exiting the fund, followed by BlackRock’s IBIT with $164.37 million in net redemptions.

Wall Street Bitcoin Miner`s Stocks Collapse as BTC Price Slips Below $90K

Shares of major publicly listed Bitcoin (BTC) mining companies tumbled this week as the oldest cryptocurrency continued its retreat below the critical $90,000 threshold. Widening net losses and increasing competition led the worst-performing stock to lose nearly 30% in a single day. Industry leaders were also unable to resist the negative trend, as the index tracking the condition of BTC mining stocks dropped to its lowest levels since September 2024. Cipher Mining Inc. (NASDAQ: CIFR) shares declined despite reporting fourth-quarter net earnings of $18 million, or $0.05 per diluted share. The company`s adjusted earnings reached $51 million ($0.14 per diluted share), but investors appeared more focused on longer-term concerns about profitability.

Bitcoin Faces Short-Term Losses, But No Panic Selling Yet

Bitcoin recently saw a nearly 5% drop, and the total cryptocurrency market cap decreased by 6.65% in 24 hours, raising fears of a prolonged downturn. However, experts suggest that while short-term losses are expected, panic selling akin to the 2022 crisis is not yet a certainty. The Fear and Greed Index plunged from 49 to 25 in a single day, signaling `extreme fear` within the market. A deeper analysis of Bitcoin`s market metrics indicates that the situation is quite different from past crises.

Coinbase Whales Influence BTC Price Action, Bull Market US-Driven

CryptoQuant CEO Ki Young Ju stated that Bitcoin`s recent price movements have been significantly influenced by whales on Coinbase. Over the past week, Coinbase`s spot volume dominance, which represents the share of total Bitcoin spot trading volume occurring on the exchange, surged above 30%. Simultaneously, the Coinbase BTC premium, tracking the price difference between Bitcoin on Coinbase and other exchanges like Binance, remained negative. This suggests that U.S. investors, particularly institutional ones, are driving both the current bull market and recent corrections.

Block Inc. Negotiating Settlement with NYDFS Over Compliance Issues

Block Inc., founded by Jack Dorsey, is reportedly in negotiations with the New York State Department of Financial Services (NYDFS) to settle concerns over its Bank Secrecy Act/Anti-Money Laundering (AML) and Bitcoin (BTC) programs. The company disclosed this in its latest Form 10-K filing with the United States Securities and Exchange Commission. The negotiations are ongoing to determine if the matter can be resolved on acceptable terms. Block has faced multiple regulatory and legal challenges, including investigations into its compliance framework and tax disputes.