Bitcoin ETF

Bitcoin

Grayscale Bitcoin Trust

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/grayscale-bitcoin-trust-sees-massive-outflows-as-market-trembles" rel="noopener noreferrer nofollow">Grayscale Bitcoin Trust Sees Massive Outflows as Market Trembles</a><br></p>
<p style="text-align: justify">Grayscale’s conversion of its <a href="https://en.bitcoinhaber.net/understanding-the-legacy-of-the-2008-crisis-in-todays-crypto-landscape" rel="noopener noreferrer nofollow">Bitcoin</a> Trust into an exchange-traded fund (ETF) experienced a drastic $598.9 million withdrawal on February 29, contributing to a sharp 3.3% dip in Bitcoin’s value from its daily peak. The <a href="https://en.bitcoinhaber.net/el-salvador-launches-freedom-visa-adoption-program-in-collaboration-with-tether" rel="noopener noreferrer nofollow">cryptocurrency</a>‘s price fell to just below $61,500, retreating from its 24-hour high of $63,585.</p>
<h2 id="unprecedented-outflows-and-market-impact">Unprecedented Outflows and Market Impact</h2>
<p style="text-align: justify">The outflow from Grayscale’s Bitcoin ETF is near to its highest ever, with a record $640.5 million seen earlier on January 22. The substantial withdrawals have not gone unnoticed, with Bloomberg’s senior ETF analyst Eric Balchunas remarking on the significance of the event. Just days prior, a historic low outflow of $22.4 million had been recorded, indicating a volatile period for the fund.</p>
<h2 id="bitcoin-etfs-and-halving-concerns">Bitcoin ETFs and Halving Concerns</h2>
<p style="text-align: justify">The American market for Bitcoin ETFs has been bustling, with a combined net inflow of $673.4 million hitting a ten-ETF high on February 28. However, Grayscale’s latest outflows could overshadow these gains. Contrastingly, Fidelity’s Bitcoin ETF saw a relatively modest net inflow of $44.8 million, marking one of its lower intake days.</p>
<p style="text-align: justify">Warnings from JPMorgan analysts suggest that the anticipated Bitcoin halving event in April, which will cut block rewards in half, might actually precipitate a decline in Bitcoin’s price, possibly to $42,000, contrary to the common expectations of a price surge.</p>
<p style="text-align: justify">The cost of Bitcoin production is expected to effectively double post-halving, theoretically setting a new bottom price for the cryptocurrency. However, with a potential 20% decrease in <a href="https://en.bitcoinhaber.net/etiyopia-rises-as-a-new-powerhouse-in-bitcoin-mining" rel="noopener noreferrer nofollow">mining</a> difficulty, production costs may drop, leading to the forecasted price fall post-halving. The predicted drop in mining difficulty assumes that less efficient miners will cease operations, impacting the overall hash rate and difficulty of Bitcoin mining.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/grayscale-bitcoin-trust-sees-massive-outflows-as-market-trembles" rel="noopener noreferrer nofollow">Grayscale Bitcoin Trust Sees Massive Outflows as Market Trembles</a></h5>

Grayscale Bitcoin Trust Sees Massive Outflows as Market Trembles

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