Bitcoin ETFs faced a challenging week last week, with Spot Bitcoin ETFs experiencing consecutive daily outflows. This trend indicated a potential decrease in bullish sentiment among institutional traders. The price of Bitcoin also reflected this bearish movement, dropping to as low as $61,370 during the week.
The surge in investor interest in Spot Bitcoin ETFs seen in February and early March resulted in Bitcoin reaching an all-time high of $73,737. Despite this positive momentum, the ETFs faced five consecutive days of outflows last week, setting a negative record. Data from BitMEX Research revealed significant outflows totaling $154.4 million, $326.2 million, $261.6 million, $93.1 million, and $51.6 million. Grayscale’s GBTC also experienced its largest single-day outflow of 9,539.7 BTC worth over $642.5 million.
The unexpected decline in inflows was not limited to Grayscale’s GBTC, as other major Spot ETFs like BlackRock (IBIT) and Fidelity (FBTC) also experienced weak inflows. BlackRock, traditionally a target for substantial inflows, recorded a new inflow low of $18.9 million, while Fidelity saw its inflow decrease to $5.9 million.
Bitcoin is currently trading at $65,122, and the key question is whether it can regain its recent all-time high above $73,000. The continuous outflows from Spot Bitcoin ETFs have the potential to further weigh on Bitcoin’s price. Despite the reduced inflows, trading volume remained significant throughout the week, with a total trading volume of $164 billion for the 10 ETFs.
The upcoming days will be critical in determining Bitcoin’s next major price movement. Despite the challenges faced last week, there is still a possibility for Bitcoin to rebound towards $73,000 or even higher, especially with the approaching Bitcoin halving event. Investment decisions should be made cautiously, conducting thorough research to assess potential risks associated with investing in Bitcoin.
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