Spot Bitcoin and Ethereum exchange-traded funds in the United States experienced joint outflows on Sept. 11 following the joint positive flows recorded the previous day.

According to data from SoSoValue, the 12 spot Bitcoin ETFs in the U.S. logged a net outflow of $43.97 million on Sept. 11, ending their two-day streak of positive flows.

Interestingly, ARK 21Shares’ ARKB recorded the largest outflows among the ETFs yesterday, with $54 million in withdrawals, as reported by SoSoValue. Grayscale’s GBTC followed with net outflows amounting to $4.6 million, while its Bitcoin Mini Trust registered outflows of approximately $511,230.

On the other hand, Fidelity’s FBTC led the inflows for the day, recording $12.6 million in net additions. Invesco’s BTCO followed with $2.6 million in inflows. The remaining seven BTC ETFs including BlackRock‘s IBIT saw no trading activity on the day. Notably, IBIT, the largest spot BTC ETF by net assets has not seen any net inflows since Aug. 26.

Overall, these ETFs have seen net positive flows in the last three days, with total inflows into all spot BTC ETFs at approximately $101.7 million.

Total trading volume for the 12 BTC ETFs jumped to $1.27 billion on Sept. 11, significantly higher than the $717 million seen the previous day. These funds have recorded a cumulative total net inflow of $17 billion since inception. At the time of writing, Bitcoin (BTC) was up 2.7% over the past day, trading at $57,932, per data from crypto.news.

Meanwhile, the nine U.S. spot Ethereum ETFs also recorded a net outflow of $542,870 on Sept. 11, led by VanEck’s ETHV with $1.7 million in outflows. Fidelity’s FETH was the only ETF to record inflows, at $1.2 million. However, it was significantly lower than ETHV’s outflows and could not offset the overall loss.

The remaining Ether ETFs remained neutral on that day.

These investment vehicles have also seen their daily trading volume rise to $126.2 million on Sept. 11, a jump over the previous day. The spot Ether ETFs have experienced a cumulative net outflow of $562.6 million to date. At the time of publication, Ethereum (ETH) was also up by 1%, exchanging hands at $2,354.

The crypto market has lost $160 billion in a week as the market cap plunges to $1.98 trillion from $2.14 trillion. Leading cryptocurrencies Bitcoin and Ethereum prices today tumbled to a low of $55,606 and $2,306, respectively. Other top altcoins such as BNB, Solana, XRP, Dogecoin, Toncoin, Cardano, and meme coins also succumbed to the crashing crypto market, triggered by factors such as macroeconomic events, bearish sentiment, and technical chart weakness.

Here’s Why Crypto Market Falling

The crypto market continues crashing despite U.S. Fed officials are upbeat on interest rate cuts in September as inflation and the labor market in the United States are slowing. Pro-XRP lawyer John Deaton’s victory in the Republican primary election indicates positive development for the crypto market and Ripple community. Let’s look at the top 5 reasons why the crypto market is crashing today:

1. September Is Bearish For Stocks and Crypto Market

Historically, the month has been tough for the crypto market as well as other asset classes. Bonds were lower in 8 out of the last 10 September and gold has been lower every year since 2017. Thus, Bitcoin, ETH, XRP, SOL, and meme coins are falling today.

Dow Jones fell 1.51%, the S&P 500 tumbled 2.12% and the Nasdaq Composite plunged 3.26%, which is their worst drop since the August 5 selloff.

Coinglass data indicates that over $200 million in crypto were liquidated in the last 24 hours. Among these, more than $173 million in longs and $27 million in shorts were liquidated amid the bearish sentiment.

Moreover, over 75K traders were liquidated and the largest single liquidation order happened on crypto exchange Binance as someone sold ETH for USDT valued at $2.94 million. However, investors have remained overall bullish on XRP.

2. Spot Bitcoin (BTC) ETF and Spot Ethereum (ETH) ETF Outflows

Bitcoin ETFs in the U.S. saw a fifth consecutive outflow, degrading the crypto market sentiment among investors. On Tuesday, spot Bitcoin inflows recorded a net outflow of $287.8 million. Surprisingly, Fidelity Bitcoin ETF (FBTC) saw the highest outflow of $162.3 million, surpassing even the outflows from GBTC recently.

Spot Ether ETFs saw a net outflow of $47.4 million on Tuesday. It has started the first trading day of the month with outflows not seen in the previous weeks. Ethereum price is struggling to hit new ATH and currently trades below $2,400, 4% down in the last 24 hours.

Ether ETFs Went Backward in First Month.. flows -$476m as the newbies couldn’t overcome the $ETHE unlock, too powerful a force (this is why I reiterated how heroic the New Nine bitcoin ones were) but good news is unlock will end, there’s light at end of tunnel via @JSeyff pic.twitter.com/Y8QphnFAXq

— Eric Balchunas (@EricBalchunas) September 3, 2024

3. Bank Of Japan Governor Affirms Further Rate Hike

Bank of Japan Governor Kazuo Ueda in a document submitted to a government panel chaired by outgoing Prime Minister Fumio Kishida reiterated further rate hikes. Japanese stock index Nikkei 225 tumbled 4.24% today on BOJ rate hike, Nvidia-led tech selloff, and US recession cues.

As CoinGape earlier reported, economists surveyed revealed that BOJ will likely hike rates again by the end of the year. Also, Pacific Investment Management expected a rate hike in January.

Traders fear a crypto market crash is imminent due to growing Japanese yen carry trades by hedge funds and corporate players.

4.  Bitcoin Price Dropped After Weak ISM Manufacturing PMI Data

The crypto market extended crash yesterday immediately after the weak ISM Manufacturing PMI data showed factory activity slowed for a fifth consecutive month. ISM Manufacturing PMI came in at 47.2 in August, missing market expectations of 47.5.

The weak US manufacturing data has fueled recession fears. Traders now eye upcoming jobs data including non-farm payrolls, unemployment rate, and JOLTs job opening this week. Citi analysts suggested that a job growth of 125,000, combined with an unemployment rate of 4.3%, will cause the Federal Reserve to cut interest rates by 50 basis points.

5. DOJ Subpoena Nvidia for Antitrust Investigation

US DOJ has intensified its antitrust investigation into Nvidia by issuing subpoenas to the AI chip giant. Investors reacted immediately amid the new level of scrutiny from the regulators. This brought back the Microsoft antitrust case in focus which crashed markets in 2000.

Notably, the Nasdaq stock index fell by 75% from March 2000 to October 2002, tech stocks erased most gains since the bubble started to expand.

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Varinder Singh

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.