- Institutional investors retreat as ETF outflows increase
Risky assets like cryptocurrencies saw a decline in prices as the shutdown in the US ended and the committee members were signaling that there would be no interest rate cut in the December meeting of the Federal Open Market Committee.
Major crypto Bitcoin fell more than six percent to slip below $1,00,000 and was quoted around $97,000 late in the evening. Other cryptos Ethereum, Binance, XRP, Solana have also seen a correction of up to eight percent.
In the last 24 hours, Bitcoin was quoted at a low of $96,560 and at a high of $1,03,204 and was quoted at $97,460 late in the evening. Eleven spot Bitcoin exchange-traded funds (ETFs) listed in the US saw a combined outflow of Rs 86.98 crore on Thursday, the largest single-day outflow so far, data showed.
The outflows also put pressure on prices. The dollar index was held down by a lack of solid data and speculation that the Federal Reserve would not cut interest rates in view of high inflation. There were signs that institutional investors in cryptos were moving out of cryptos and into the dollar as the shutdown ended.
The decline in most cryptocurrencies led to a six-month low of $3.27 trillion in the global market cap of cryptos.
Bitcoin and Ethereum have fallen by 24 percent and 36 percent, respectively, from their recent all-time highs. There were reports that $1.10 billion worth of debt was forced to be liquidated due to massive outflows in ETFs.
