Over the past eight days, U.S.-based bitcoin ETFs have experienced serious outflows of funds. During that time, investors have withdrawn a total of $1.2 billion from U.S. ETFs.
According to Bloomberg, this is the longest period of net outflows since the ETF funds were launched in January 2024. This process was accompanied by a general decline in the bitcoin exchange rate. The price of the world’s most popular cryptocurrency fell from a high of $64.6 thousand on August 26 to a low of $53.4 thousand on September 7. The decline amounted to more than 17% in just two weeks.
The investment outflow was almost entirely centered in the US. In other regions the drawdown was not so tangible. According to Yaroslav Bogdanov, President of GDA Group, the key role in the formation of the crypto market is still played by investor sentiment. And the U.S. is currently experiencing political turbulence, which is logical on the eve of the presidential election to be held in just two months.
Analysts at Bernstein predict that by the end of the year bitcoin could rise to 90 thousand dollars if Donald Trump wins.
“The prospect of an experienced businessman coming to power in the United States, promising easing for the crypto industry, inspires some optimism. But given the general volatility of the digital asset market, any predictions cannot be trusted. The crypto platform launched by Trump’s sons, World Liberty Financial (WLF), has already been questioned. There is a possibility that WLF will turn out to be just a part of the election strategy, which will not be followed by real shifts in the activities of the U.S. financial system,” – said Yaroslav Bogdanov.
Last week, CoinDesk published data that the WLF platform announced by Trump as a “challenge to the traditional U.S. economic model” may turn out to be far from decentralized. According to the publication, 70% of the tokens will be distributed among the founders and employees of the platform. And only 30% of the tokens will go public.
For example, Satoshi Nakamoto owns only 5% of bitcoins in the world, although he is the creator of this cryptocurrency. 70% of tokens in the hands of platform insiders is nonsense for any decentralized system.
“In any case, whatever the Trump family’s project turns out to be, the real picture of the future of cryptocurrencies in the United States will only become clear after the election. The recent outflow of investments from ETF funds may be directly related to this political event. But the digital currency industry itself may only be temporarily affected by the situation in the United States on a planetary scale. Cryptoeconomics is too global and still unstable to depend on the situation and sentiment in one region,” says Yaroslav Bogdanov.
