On Thursday, US spot Bitcoin ETFs took a heavy hit, with a single-day outflow of $194.6 million, setting the worst record in nearly two weeks.

According to the data, BlackRock's IBIT led the decline with a net outflow of $112.9 million; Fidelity's FBTC lost $54.2 million; products from VanEck, Grayscale, and Bitwise were not spared, all seeing losses across the board.

Nick Ruck, Research Director at LVRG Research, pointed out that this wave of withdrawals was mainly due to "basis trading" positions being continuously closed. Simply put, the price spread between futures and spot fell below the critical point, forcing arbitrage traders to exit at a loss. The market was already volatile, and this hit made liquidity even tighter.

Nick also mentioned that everyone is now watching the latest US inflation data and the Federal Reserve's interest rate decision on December 10. "If the Fed really cuts rates by 25 basis points and signals further easing, it might give the market a shot of adrenaline."

Timothy Misir, Head of Research at BRN, citing data from CryptoQuant and Glassnode, said that currently the amount of Bitcoin held on major exchanges...