Grayscale Bitcoin Trust Records Historic Low Outflows Amid Bitcoin Price Rebound
Summary:
Grayscale Bitcoin Trust (GBTC) has seen record low outflows down almost 90%, coinciding with a Bitcoin price rebound stirred by new U.S inflation data. According to Farside, GBTC experienced a significant decline in outflows from $154.9 million to $17.5 million. While this was happening, Bitcoin’s value rose by 2.08% to $70,474, despite an initial dip following the release of the U.S. Consumer Price Index (CPI). These developments suggest a potential slowdown in GBTC outflows which have amounted to $16 billion since GBTC was converted to a spot Bitcoin ETF in January. Other Bitcoin-focused funds also experienced substantial inflows.
The Grayscale Bitcoin Trust (GBTC) recently witnessed its outflows plummet to a record low, marking a nearly 90% drop from the prior day. This coincides with a bounce back in Bitcoin's (BTC) price as new inflation data from the United States stirred volatility. Data from Farside shows that on April 10, GBTC experienced $17.5 million in outflows, compared to the $154.9 million on April 9. Simultaneously, Bitcoin's value has climbed 2.08% in the last 24 hours, reaching $70,474 according to CoinMarketCap data.
Within this same period, Bitcoin briefly dipped to a local low of $67,482 after the U.S. Consumer Price Index (CPI) for March was released, showing a 3.5% year-on-year increase. This sparked concerns about the Federal Reserve possibly postponing interest rate cuts further. Over the last week, Bitcoin's price has fluctuated between $65,600 and $72,668.
Some in the crypto community have speculated that this could mark the beginning of a slowdown in GBTC outflows, which have totaled $16 billion since GBTC was transitioned to a spot Bitcoin ETF in January. In a recent post, Apollo's CEO, Thomas Fahrer, pondered if GBTC selling was drawing to a close.
Fahrer highlighted that the April 10 outflows equate to roughly 250 Bitcoin, a nearly 95% decrease in outflows since the start of the week. On April 8, Grayscale saw outflows of 4,288 Bitcoin, totaling $303 million. Meanwhile, the previous low for GBTC's outflows was recorded on February 26, when it stood at $22.4 million. The average daily GBTC outflows spanning across four months is $257.8 million.
Meanwhile, various Bitcoin funds saw significant inflows: the Fidelity Wise Origin Bitcoin Fund (FBTC) took in $76.3 million, the iShares Bitcoin Trust (IBIT) saw $33.3 million, Bitwise Bitcoin ETF (BITB) received $24.3 million, and the ARK 21Shares Bitcoin ETF (ARKB) drew $7.3 million.
On a related note, Genesis, a crypto lending firm currently in bankruptcy, recently sold approximately 36 million GBTC shares to purchase 32,041 Bitcoin. Leading industry figures are predicting China will strengthen the Bitcoin bull run, and suggest Bitcoin could be valued at $1M by 2028.
Published At
4/11/2024 8:59:36 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.