BTC Resurgence Coincides with Record Low Outflows from Grayscale Bitcoin Trust
Summary:
The Grayscale Bitcoin Trust (GBTC) records an almost 90% drop in outflows coinciding with Bitcoin resurgence after new US inflation data. GBTC reports outflows of $17.5 million on April 10, remarkably down from $154.9 million the day before, while Bitcoin’s price increases. Observers suggest this could mark the beginning of a slowdown in GBTC outflows, despite fluctuating Bitcoin prices. Genesis, a bankrupt crypto lending firm, also divests nearly 36 million GBTC shares to acquire 32,041 Bitcoin.
The Grayscale Bitcoin Trust (GBTC) exchange-traded fund (ETF) experienced a significant drop in outflows, going almost 90% down from the prior day, during a period of Bitcoin resurgence triggered by new inflation figures issued by the United States. On April 10, GBTC reported outflows worth $17.5 million, a critical reduction relative to the outflows of $154.9 million recorded on April 9, according to data from Farside. Concurrently, Bitcoin's (BTC) price surged by 2.08% in the preceding 24-hours, with a current worth of $70,474 as indicated by data from CoinMarketCap.
During the same period, it momentarily plummeted to a low of $67,482 following the unveiling of the U.S. Consumer Price Index (CPI) for March, logged at an unexpectedly high 3.5% year-on-year inflation rate. This ignited concerns of further postponements in interest rate cuts by the U.S. Federal Reserve. Over the past seven days, the Bitcoin price record shows fluctuations between $65,600 and $72,668, as reported by CoinMarketCap.
Crypto enthusiasts are once again fading hope that the massive GBTC outflows that have hit $16 billion since its January conversion into a spot Bitcoin ETF might be on the ebb. Notably, Thomas Fahrer, CEO of the crypto-focused reviews website Apollo, set the speculation wheels turning among his 41,500 followers after his April 11 blog post titled "GBTC selling over?" Fahrer highlighted that the $17.5 million outflows on April 10 equates to around 250 Bitcoin, marking a drop of nearly 95% from early week figures.
On April 8, Grayscale reported Bitcoin equivalent outflows totaling 4,288 and valued at $303 million. Historical data highlights the previous low on February 26, when GBTC marked $22.4 million in outflows. On average, GBTC had daily outflows of approximately $257.8 million over the past four months.
The inflow activity for other funds showed that the Fidelity Wise Origin Bitcoin Fund received $76.3 million, BlackRock's iShares Bitcoin Trust got $33.3 million, Bitwise Bitcoin ETF recorded $24.3 million, and ARK 21Shares Bitcoin ETF reported $7.3 million.
In other notable news, the financially distressed crypto lending firm Genesis recently unloaded nearly 36 million GBTC shares to purchase 32,041 Bitcoin.
One crypto magazine reported that China aims to drive the Bitcoin bull run, predicting a value of $1M by 2028 according to Bitcoin Man, a member of the X Hall of Flame.
Published At
4/11/2024 2:51:47 PM
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