The recent decline in Bitcoin's price can be attributed to significant outflows from Bitcoin exchange-traded funds (ETFs) and a cautious stance from the Federal Reserve. On December 19, spot Bitcoin ETFs in the U.S. experienced $680 million in outflows, ending a 15-day streak of inflows. Major funds like Fidelity's FBTC and Grayscale's GBTC saw substantial withdrawals, contributing to the bearish sentiment. Additionally, the Federal Reserve's decision to cut interest rates by 0.25% while maintaining a cautious approach to future cuts has added to the negative outlook, leading to a broader decline in the cryptocurrency market. Analysts have noted that Bitcoin's drop below $96,000 is significant, as it could lead to further declines if the price does not stabilize.
The 2x Bitcoin Strategy ETF (BITX) experienced a notable decline, dropping 4.09% to $54.00 at 5:20 AM on Friday, December 20.