Market News

BY  Brian McGleenon

Bitcoin (BTC-USD) slipped below $118,000 (£87,075) on Thursday during the Asian trading session, as global digital asset markets faced mounting pressure from profit-taking from exchange-traded fund (ETF) outflows.

The world’s largest cryptocurrency by market capitalisation has come under renewed selling pressure as long-term holders lock in gains and spot bitcoin ETFs in the US continue to bleed capital. This confluence of macro and market-specific factors has weighed on prices despite broader demand remaining strong.

Meanwhile, Tesla (TSLA) reported unrealised gains on its bitcoin holdings in Q2, its first crypto-related earnings boost under new US accounting rules that now allow companies to mark crypto assets to market.

Tesla currently holds approximately 11,509 BTC, purchased primarily in 2021, which are now valued at around $1.2bn following bitcoin’s 30% rally in the second quarter of this year.

ETF outflows accelerate as markets consolidate
Data from Farside Investors showed net outflows from US spot bitcoin ETFs for the third consecutive day. On Wednesday alone, investors pulled $86m from these funds, bringing the week’s total to over $285m.

Not all funds saw redemptions. BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) (IBIT) bucked the trend, pulling in $143m in net inflows. But those gains were outweighed by significant withdrawals from Fidelity’s Bitcoin fund, which lost $227m. Bitwise’s BITB and ARK Invest’s ARKB also saw moderate outflows.