Bitcoin ETF Flows Turn Negative As Q2 Begins, Halving Excitement Ends?

On Monday, April 1, the total flows into all nine spot Bitcoin ETFs combined turned negative once again! As it turns out the outflows from the Grayscale Bitcoin ETF GBTC have surged again. On Monday, the total outflow from GBTc surged past $300 million once again.

Bitcoin ETFs See Net Outflows

On April 1, Bitcoin spot ETFs collectively experienced a net outflow of $85.84 million. Among the notable movements, the Grayscale ETF GBTC recorded a single-day net outflow of $302 million.

Conversely, the BlackRock ETF IBIT saw a net inflow of $165 million, while Fidelity ETF FBTC witnessed a net inflow of $43.99 million. Notably, the cumulative net inflow for Bitcoin spot ETFs reached an impressive $12.04 billion, highlighting continued investor interest in this asset class, as per data from Farside Investors.

Amid these negative flows, the Bitcoin price has entered a sharp correction dropping 5.5% all the way to $66,000. Along with Bitcoin, even the broader cryptocurrency market has witnessed strong liquidations in the last 24 hours.

Interestingly, the sharp correction comes just ahead of the upcoming Bitcoin halving event, which is just 19 days away from now. This correction could pour water to analysts’ expectations of the BTC price touching $75,000 by the halving event.

Fed’s Monetary Policy Faces Challenges

As April commences, the crypto market’s retreat suggests a waning momentum in the recent robust rally, notably characterized by Bitcoin’s surge to an all-time high. This shift in sentiment reflects a more cautious stance prevailing in global markets, prompted by lingering inflationary pressures in the United States. Consequently, investors are scaling back their expectations for looser monetary policies and interest rates cuts from the Federal Reserve.

Stefan von Haenisch, the head of trading at OSL SG Pte in Singapore, remarked that the anticipation of reduced interest-rate cuts by the Fed is reverberating across the cryptocurrency sphere. This sentiment is evidenced by a broad sell-off observed as the week unfolds, affecting various sectors within the crypto market. Notably, sectors that have outperformed Bitcoin over the past six months, such as meme coins, are notably affected by this cautious mood.