Bitcoin ETF

Billion

<p>The Grayscale Bitcoin ETF GBTC continues to bleed putting an overall dent on the <a href="https://coingape.com/bitcoin-etf-outflow-fed-dovish-btc-price/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin ETF market</a>. On Thursday, March 21, GBTC recorded yet another day of major outflows at $359 million. With this, the total outflows from the Grayscale Bitcoin fund have skyrocketed to $1.8 billion for this week. after a strong bounce back on Wednesday after the FOMC meeting, the Bitcoin price has once again entered consolidation.</p>
<h3 id="the-gbtc-outflows-create-price-pressure">The GBTC Outflows Create Price Pressure</h3>
<p>After a strong start to March 2024, the Bitcoin ETF outflows have accelerated this week! On Thursday, March 21, the next outflows stood at $95 million as per <a rel="noopener noreferrer nofollow" href="https://farside.co.uk/?p=997" target="_blank">data</a> from Farside investors. While GBTC registered $358 million of net outflows, the BlackRock Bitcoin ETF IBIT registered $233 million of net inflows.</p>
<p>Renowned Bitcoin analyst Willy Woo has shed light on a notable discrepancy between exchange-traded funds (ETFs) and self-custody investors amid recent market fluctuations. Woo’s analysis reveals a significant disparity in investment behavior during the market downturn, particularly concerning outflows from ETFs and net inflows into the Bitcoin network.</p>
<p>During the initial dip, ETF investors exhibited a reactionary stance, withdrawing approximately $1.6 billion from ETFs. In contrast, the Bitcoin network witnessed total net inflows of $1.1 billion, indicating a substantial influx of capital from self-custody investors.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr">ETF investors showing they're noob. On the first dip ETFs did $1.6b of outflows while the <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> network received $1.1b of total net flows.</p>
 <p>This means plenty of self custody investors bought the dip. <a href="https://t.co/HCblYm5NLk" rel="noopener noreferrer nofollow">pic.twitter.com/HCblYm5NLk</a></p>
 <p>— Willy Woo (@woonomic) <a href="https://twitter.com/woonomic/status/1771016255866290577?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">March 22, 2024</a></p>
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<p>On the other hand, some market analysts continue to be bullish about Bitcoin ETFs noting that the GBTc outflow is a temporary phenomenon. These analysts believe that institutional buying has just begun and that more than $100 billion in Bitcoin ETFs could come over the next 1-2 years.</p>
<h3 id="will-bitcoin-etf-demand-recover">Will Bitcoin ETF Demand Recover?</h3>
<p>CryptoQuant CEO Ki Young Ju states that the current deceleration in Bitcoin spot ETF netflows indicates a slowdown in demand for these investment vehicles. However, he suggests that this trend could potentially reverse if the price of Bitcoin approaches critical support levels.</p>
<p>Further insights provided by Ju highlight the behavior of new whales in the market, particularly those identified as ETF buyers. These new entrants have established a $56,000 on-chain cost basis, potentially influencing market dynamics.</p>
<p>In assessing historical data, Ju noted that corrections in bull markets typically entail a maximum drawdown of approximately 30%. Additionally, he identifies a maximum pain point of $51,000, suggesting a threshold at which market sentiment may shift significantly. Data from <a href="https://coingape.com/jpmorgan-bitcoin-btc-overbought-territory-slowing-etf-inflows-a-concern/" target="_blank" rel="noopener noreferrer nofollow">JPMorgan</a> also suggests that Bitcoin is currently in the ‘overbought’ category and expects healthy correction ahead.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> spot ETF netflows are slowing.</p>
 <p>Demand may rebound if the <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> price approaches critical support levels.</p>
 <p>New whales, mainly ETF buyers, have a $56K on-chain cost basis. Corrections typically entail a max drawdown of around 30% in bull markets, with a max pain of $51K. <a href="https://t.co/vZCG4F0Gh5" rel="noopener noreferrer nofollow">pic.twitter.com/vZCG4F0Gh5</a></p>
 <p>— Ki Young Ju (@ki_young_ju) <a href="https://twitter.com/ki_young_ju/status/1771038205623865426?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">March 22, 2024</a></p>
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<p>The post <a href="https://coingape.com/gbtc-outflows-jump-to-1-8-billion-this-week-btc-price-in-consolidation/" rel="noopener noreferrer nofollow">GBTC Outflows Jump to $1.8 Billion This Week, BTC Price Enters Consolidation?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.</p>

GBTC Outflows Jump to $1.8 Billion This Week, BTC Price Enters Consolidation?

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