New york: 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.

According to Anadolu Agency, the cryptocurrency market has shown 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, experienced a notable fall from $120,000 to $80,000 during the same period. The total outflows from spot Bitcoin ETFs have now reached $4.34 billion, compared to $1.22 billion recorded last week.

Mustafa Batuhan Tufaner, an associate professor of economics at Istanbul Beykent University, explained to Anadolu that institutional outflows from ETFs have reduced liquidity and pulled down the spot price of Bitcoin, while these price declines have triggered further outflows. Tufaner highlighted two primary reasons for these significant ETF outflows in November: short-term profits following a small surge in October and uncertainty in global macro policies, which have led to a decline in risk appetite and accelerated the shift from risky assets to cash.

Tufaner further elaborated that the upcoming rate decision by the Federal Reserve, alongside inflation and US employment data, will be crucial for the crypto market's future. Ongoing monetary policy expansion and dovish rhetoric from Fed officials could support demand, while net inflows from institutional investors, statements from Fed officials, and changes in leverage positions will be decisive in market direction. In the short term, crypto regulations and institutional preference for ETFs will play a significant role in determining pricing.