How do large Bitcoin ETF outflows of 1.33 billion dollars in late January impact price stability?
Why is this the correct answer?
This is correct because when large sums exit an ETF, those assets are sold on the open market to meet redemptions. Fewer buyers from the ETF side means selling pressure dominates, pushing prices down or causing wider intraday swings. Beginners should recognize that ETFs pool many investors’ money, so their flows can move the underlying asset significantly even if retail trading stays quiet.
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