Bitcoin ETFs Suffer Heavy Losses as Price Drops Below $89,600

Investors in U.S.-traded Bitcoin ETFs saw heavy losses after Bitcoin briefly dipped below the $89,600 level. The average holding cost for many of these products now sits around that price mark, causing unrealized losses for investors who hold a portfolio in these ETFs. Market experts are observing if institutional interest in Bitcoin will lead to further inflows, which could impact the cryptocurrency’s trajectory in the coming days. 2025 saw significant investor demand for bitcoin-related ETFs, but their popularity has been declining recently. A return of investment interest might be triggered by market sentiment and the Federal Reserve’s policy on inflation and interest rates.