Bleeding Bitcoin ETF: Altcoins Shine in the Market - Kriptokoin.com

Crypto the money market witnessed a turbulent day on Wednesday. Bitcoin (BTC) fell to its lowest level since late February. In addition, investors withdrew record amounts of money from U.S.-based spot Bitcoin exchange mutual funds (ETF s). That outflow, which totaled a staggering $563 million, coincided with a brief rebound triggered by dovish comments from Federal Reserve Chairman Jerome Powell.

Mass exodus from Bitcoin ETF

Data from Farside Investors and CoinGlass revealed a net outflow of $563.7 million from 11 U.S.-based Bitcoin ETF. This marks the largest single-day outflow since the funds began trading in January, continuing a worrying five-day streak of fall. Fidelity's FBTC, in particular, led the outflows with a hemorrhage loss of $191.1 million. This is particularly worrisome because FBTC, along with BlackRock's IBIT, steadily attracted capital in the first quarter, offsetting outflows from the more expensive Grayscale Bitcoin Trust (GBTC).

However, Bitcoin's rally was short-lived, falling to around $57,300 at the time of writing. This surge coincides with the lackluster launch of Asia's first spot Bitcoin and Ethereum ETF in Hong Kong earlier this week. These launches have attracted very low trading volumes, further weakening investor confidence.

### Signs of life in altcoins

While Bitcoin and Ethereum (ETH) experienced declines, some altcoins defied the fall trend. Solana (SOL), XRP and Cardano (ADA) all recorded notable gains. Solana increased by 2.75%, XRP by 1.75% and Cardano by 0.66%. This selective acquisition suggests that some investors are taking refuge in certain altcoin projects amid broader market uncertainty. The biggest gainers of the day were Axelar (AXL) with 8.11% and Polkadot (DOT) with 5.22%. EOS and Optimism also recorded rise around 3 percent.

Despite strong pockets in the altcoin sector, significant liquidations in the market paint a picture of ongoing investor anxiety, with only Bitcoin witnessing long liquidations of $145.55 million in the last 24 hours, according to Coinglass. The coming days will be crucial in determining whether Powell's dovish stance will provide continued support to the cryptocurrency market, or if recent outflows from his Bitcoin ETF signal a deeper shift in investor sentiment.

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