BTC Price Under Pressure As Bitcoin ETF Outflows Shoot Over $350 Million
Highlights
- GBTC sees $445 million of net outflows despite despite talks of fee cuts.
- All eyes on the FOMc meeting as the Bitcoin price take a dive to $61,500.
- Market analysts reject the notion that the Bitcoin bull market is over.
Well, the tides seem to be turning around as the Bitcoin ETFs have recorded the second consecutive day of outflows on Tuesday, March 19. As a result, the Bitcoin (BTC) price has come under pressure dropping by another 6% while taking a dive under $62,000.
The Bitcoin ETF Outflows
As per data from Farside investors, the total outflows across all nine Bitcoin ETFs on Tuesday stood at $326 million, more than double that of the previous day. With the second consecutive day of outflows, the market sentiment seems to be shifting around currently.
The net inflows for the BlackRock Bitcoin ETF IBIT stood at just $75 million while Fidelity’s FBTC stood second at $39.6 million. While all other Bitcoin ETFs registered almost nil inflows, according to data from Farside. It seems that institutional investors have been taking a cautious stand ahead of the FOMC decision on Wednesday, March 20.
On the other hand, the Grayscale Bitcoin ETF GBTC continues to bleed with a staggering $444 million of net outflows on Tuesday. Grayscale reported a further loss of 6,860 Bitcoin today, constituting approximately 1.9% of its total Bitcoin holdings. Interestingly, this comes despite the fact that Grayscale CEO Michael Sonneshien stated that they would soon reduce the fees for GBTC. This seems to have played little in convincing the investors otherwise.
BTC Price Under Pressure
As anticipation mounts ahead of the Federal Open Market Committee (FOMC) meeting scheduled for later tonight, the cryptocurrency markets witness heightened volatility. Notably, Bitcoin (BTC) and Ethereum (ETH) have experienced significant declines, with BTC dropping to lows of 61,500 and ETH touching 3,145.
The 60,000 level in BTC is likely to offer psychological support amidst the downturn. However, market analysts emphasize the crucial role of demand from spot BTC ETFs in maintaining stability at this level.
In a recent analysis by CryptoQuant, questions arise regarding the status of the ongoing bull market in the cryptocurrency space. However, there is no major indication suggesting that the bull market has concluded.
Drawing insights from historical Bitcoin cycles, it is noted that previous bull markets did not halt at previous all-time highs (ATH). With the current momentum surrounding Exchange-Traded Funds (ETFs) and the upcoming Halving event, there is optimism for a continued upward trajectory in the market. Reflecting on past trends, it is observed that in 2020, it took nearly two months to surpass the previous ATH range.
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