Bitcoin Bounces Back to $70,000: Bullish Indicators Rise Despite GBTC Outflows
Summary:
Bitcoin's (BTC) price bounced back to $70,000 on March 25, reviving investor speculation of a new all-time high. Despite a record exit from the Grayscale Bitcoin Trust (GBTC) and macroeconomic strains, Bitcoin's price has markedly rebounded. While Bitcoin continues to leave exchanges, institutional investors have pushed a whopping $12.3 billion into crypto in 2024, with $11.9 billion specifically flowing into Bitcoin. With an increase in non-zero Bitcoin wallets and sustained institutional investment, a bullish future for Bitcoin seems to be heavily indicated.
On March 25, Bitcoin's (BTC) value soared back to the $70,000 mark after nine days, marking a strong recovery from the previous week's downturn. Investors are speculating whether this upswing implies the arrival of a new all-time high for Bitcoin's market value. As the Bitcoin market value hovers near historic peaks, investor sentiment, according to the Market Prophit index, has shown fluctuation potentially due to record withdrawals from the Grayscale Bitcoin Trust (GBTC) Bitcoin ETF.
Despite macroeconomic uncertainties and more than 31,000 BTC being pulled from GBTC, Bitcoin's value has seen a swift rebound. Interestingly, Bitcoin is continually being withdrawn from exchanges. The amount of Bitcoin in storage on Coinbase reached its lowest level in nine years on March 25.
The Bitcoin ETF arena was dominated by GBTC inflows, which reported a staggering $2 billion withdrawal. However, $1.1 billion of new investments flowed into Bitcoin ETFs in the week ending March 25, breaking a seven-week trend of outflows exceeding inflows.
Data from CoinShares reveals that institutional investors have funnelled $12.3 billion into cryptocurrencies as of 2024. In comparison, the total investment into digital currencies totalled to a record $10.6 billion for the entire year of 2021. Of the $12.3 billion invested in digital currencies in 2024, a whopping $11.9 billion was allocated to Bitcoin, making its assets under management (AUM) stand at an imposing $68.8 billion, far exceeding its contemporaries.
In addition to institutional investors, retail investors have also depicted an increasing interest in Bitcoin. The number of Bitcoin wallets holding more than zero BTC has consistently stayed above 51 million for the entire duration of 2024. Coupled with the steady value growth observed month-over-month, as of March 24, only 3% of Bitcoin wallets were operating at a loss.
These trends, with more non-zero Bitcoin wallets, Bitcoins leaving exchanges, and sustained institutional interest, signal a robust bullish outlook for the Bitcoin market.
This news article does not provide investment guidance or suggestions. Every investment or trading decision involves risks, thus potential investors are advised to conduct their personal due diligence before finalizing any decision.
Published At
3/25/2024 8:50:01 PM
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