Bitcoin's Record Outflows and ETF Slump Signal Cryptocurrency Market Volatility

Bitcoin has dropped 16% from its all-time high as outflows from new bitcoin exchange traded funds hit nearly $500 million in the last two days, with Grayscale experiencing the largest outflow of over $1 billion. The surge in bitcoin's price this year has been accompanied by significant inflows into new funds, but consistent outflows at Grayscale have totaled more than $12 billion since its approval as an ETF. Market analysts attribute the price volatility to the lack of fundamental valuation anchors for bitcoin and the varying fee structures among different ETF providers. Despite the recent decline, some experts believe it is a minor correction rather than a cause for panic.