Momentum Shift in Bitcoin Market as Institutional BTC Outflows Slow Down
Summary:
This article discusses the potential shift in momentum for Bitcoin (BTC) as institutional BTC outflows decrease. The spotlight is on US Spot Bitcoin ETFs, which have seen dwindling inflows and record outflows. However, with bankruptcy-hit Genesis allegedly halting its GBTC offloading routine, the downward pressure on ETF trends could ease. This situation has led to discussions suggesting a possible turning point for BTC's momentum. The piece concludes by reflecting on the success of Spot Bitcoin products, the most successful ETF launch ever, and anticipates future institutional exposure.
There's a potential shift in momentum as institutional BTC outflows wane. On March 22, Grayscale Bitcoin Trust (GBTC), overseen by UK investment company Farside, reported a loss of a mere $170 million. Could this indicate a consolidation of BTC price before it retests its peak?
US Spot Bitcoin ETFs have lately been attracting attention, unfortunately, for possibly unfavourable reasons. Inflows have significantly dwindled since the start of March, while GBTC outflows reached unprecedented highs, resulting in five straight days of net asset decline. This timing seems far from coincidental. Bankrupt cryptocurrency lender Genesis is purported to have been offloading its GBTC holdings all week, and if these transactions have now ended, they could relieve downward stress on ETF trends.
Receive $51.6 million however suggest a pivoting trend. Alistair Milne, an investor and entrepreneur, stated in an X post (formerly Twitter) about this data: "Is the momentum shifting?"
Farside's pivot point theory concurs with the views of statistician Willy Woo, creator of on-chain data site Woobull. Woo introduced a model comparing ETF inflows with BTC price trends and suggested that the worst phase of the sell-off could be over.
Anonymous commenter WhalePanda also shares similar sentiments. Evaluating the week's inflows, WhalePanda remains hopeful for near-term BTC prices, indicating that by next week, conditions for returning to price discovery could be set. In contrast, others, like crypto author Vijay Boyapati, have been less favorable towards GBTC, which currently holds just over half of the AUM since its conversion to an ETF in January.
Collectively, Spot Bitcoin products represent the most successful ETF launch in history, accumulating flows of $12.15 billion since introduction. Cathie Wood, CEO of ETF provider ARK Invest, believes that the majority of institutional exposure is still on the horizon. However, remember that all investments and trading moves involve some risk. Conduct independent research before making any financial decisions.
Published At
3/23/2024 2:29:06 PM
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