Bitcoin ETF

Grayscale Bitcoin Trust

Spot

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin (BTC) faces a potential drop below $61,000 due to weakening support.</li>
 <li>Outflows from US spot Bitcoin exchange-traded funds (ETFs) and the Federal Reserve’s decision on interest rates are significant factors.</li>
</ul>
<p>Bitcoin’s price is under threat of falling below $61,000 due to weakening support.</p>
<p>The cryptocurrency’s value has been tracking a downward trend, with its lowest point reaching $60,760.</p>
<h2 id="factors-influencing-bitcoin-s-price">Factors Influencing Bitcoin’s Price</h2>
<p>Bitcoin’s price is currently 17.5% lower than its all-time high, and this downward pressure is attributed to several factors.</p>
<p>One of these is the outflow from the US spot Bitcoin exchange-traded funds (ETFs).</p>
<p>Another significant factor is the Federal Reserve’s decision on interest rates, which was due on March 20.</p>
<p>The market is closely watching Fed Chair Jerome Powell’s commentary following the Federal Open Market Committee (FOMC) meeting.</p>
<p>According to trading resource The Kobeissi Letter, it is unlikely that the Fed will change rates soon.</p>
<p>However, the market is keenly awaiting guidance following recent events.</p>
<h2 id="outflows-from-bitcoin-etfs">Outflows from Bitcoin ETFs</h2>
<p>Spot ETFs have experienced a second consecutive day of net outflows, as per data from UK-based investment firm Farside.</p>
<p>Despite the outflow from the Grayscale Bitcoin Trust (GBTC) being lower than the record $642 million from March 19, the low inflows to other ETF products have resulted in lackluster statistics.</p>
<p>Around $500 million has flowed out of spot BTC ETFs in the past two days.</p>
<p>Potential reasons for this slowdown include traders adopting a wait-and-see approach before the FOMC, and the ongoing tax season in the US.</p>
<p>Trading firm QCP Capital warned in its daily bulletin that a second day of net outflows could significantly impact Bitcoin’s price strength.</p>
<p>The firm questioned whether inflows from other ETFs could bring the net number to positive, adding that another net negative number could cause support to crack.</p>

Bitcoin ETF Outflows Approach $500M as BTC Value Plunges 17.5% This Week

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