Bitcoin’s value soared by over 4% as the Grayscale Bitcoin Trust (GBTC) witnessed its lowest daily outflow of $17.5 million on Wednesday.
This event marks a potential shift in the crypto market, reflecting a change in investor sentiment amidst volatile conditions.
Bitcoin ETF Flows Turn Positive For The First Time in the Week
Earlier in the week, GBTC faced substantial outflows totaling over $450 million. However, the outflow dramatically decreased by Wednesday, signaling a possible market stabilization.
Michael Sonnenshein, CEO of Grayscale Investments, hinted that these outflows are nearing an equilibrium, offering a glimmer of hope for the trust’s financial health.
“We do believe that the fund has started to reach a little bit of an equilibrium where some of those anticipated outflows, whether it was some of the bankruptcy selling, some investors perhaps undertaking switch trades, (are) largely behind us,” Sonnenshein said.
In contrast to GBTC’s situation, other cryptocurrency funds like BlackRock’s IBIT and Fidelity’s FBTC observed inflows, with IBIT attracting $33.3 million and FBTC leading at $76.3 million. Furthermore, Bitwise’s BITB and ARK 21Shares’ ARKB also experienced inflows, adding to the day’s total net inflow of $123.7 million.
That being said, the net flows turned positive for the first time during this week.
Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach
Grayscale has contended with increasing competition since the SEC approved new Bitcoin ETFs earlier this year. The entry of nine competitors has intensified the market dynamics, especially after the crypto industry’s downturn led to increased sell-offs from bankrupt firms aiming to liquidate their GBTC shares.
Moreover, Bitcoin’s pricing dynamics offered a rollercoaster experience. Following a brief dip to $67,500, the cryptocurrency rebounded to around $70,000.
This price action mirrored the broader market’s response to external factors such as CPI data releases and regulatory actions, like Uniswap’s receipt of a Wells Notice from the SEC.
Read more: What Happened at the Last Bitcoin Halving? Predictions for 2024
Specifically, the trading activity saw over $200 million in liquidations, with a near-even split between long and short positions. This activity highlighted the market’s reactive nature to external pressures and internal dynamics.
The post GBTC Outflows Slow Down, Signaling Potential Turnaround for Bitcoin Market appeared first on BeInCrypto.
Be the first to comment