​​​​​​ANKARA

Bitcoin exchange-traded funds (ETFs) outflows in the US have extended for a fourth consecutive week, led by profit-taking and uncertainty in global macro policies, as the crypto market continues to decline.

The cryptocurrency market showed a negative outlook in recent months, with its value declining from $4.2 trillion last month to $2.8 trillion this week.

Bitcoin, the largest cryptocurrency, fell from $120,000 to $80,000 during the same period.

The total outflows from spot Bitcoin ETFs have reached $4.34 billion. Last week, the figure was $1.22 billion.

Mustafa Batuhan Tufaner, an associate professor of economics at Istanbul Beykent University, told Anadolu that institutional outflows from ETFs reduced liquidity and pulled down the spot price of Bitcoin, while price declines triggered further outflows.

“We can say there are two main reasons for the large ETF outflows in November: short-term profits following the small surge in October and the uncertainty in global macro policies leading to a decline in risk appetite — these reasons accelerated the shift from risky assets to cash,” he said.

“The upcoming rate decision (by the Fed), inflation, and US employment data will be decisive for the crypto market — ongoing monetary policy expansion and the prominence of dovish rhetoric by Fed officials will support the demand, while net inflows from institutional investors, statements from Fed officials, and changes in leverage positions will be decisive in market direction; in short term, crypto regulations and institutional preference for ETFs will decide the pricing,” he added.​​​​​​​