Claim $500GBTC Outflows Jump to $1.8 Billion This Week, BTC Price Enters Consolidation?
Highlights
- GBTC outflows have put significant downward pressure on BTC price while inflow dry up.
- Noob investors of Bitcoin ETFs make early exits, as per on-chain data.
- This bull market correction can push the Bitcoin price to $51,000, says analyst.
The Grayscale Bitcoin ETF GBTC continues to bleed putting an overall dent on the Bitcoin ETF market. 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.
The GBTC Outflows Create Price Pressure
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 data from Farside investors. While GBTC registered $358 million of net outflows, the BlackRock Bitcoin ETF IBIT registered $233 million of net inflows.
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.
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.
ETF investors showing they're noob. On the first dip ETFs did $1.6b of outflows while the #Bitcoin network received $1.1b of total net flows.
This means plenty of self custody investors bought the dip. pic.twitter.com/HCblYm5NLk
— Willy Woo (@woonomic) March 22, 2024
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.
Will Bitcoin ETF Demand Recover?
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.
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.
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 JPMorgan also suggests that Bitcoin is currently in the ‘overbought’ category and expects healthy correction ahead.
#Bitcoin spot ETF netflows are slowing.
Demand may rebound if the $BTC price approaches critical support levels.
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. pic.twitter.com/vZCG4F0Gh5
— Ki Young Ju (@ki_young_ju) March 22, 2024
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Michael Saylor’s “Green Dots” Message Hints At Fresh Bitcoin Buying As BTC Faces $90K Wall
- Fed’s Hammack Signals No Rush to Cut Rates as January Hold Odds Near 80%
- XRP ETFs Reach $1.21B as Asset Managers See a ‘Third Path’ Beyond Bitcoin
- Nearly $50M in USDT Stolen After Address Poisoning Scam Targets Crypto Trader Wallet
- Breaking: Rep. Max Miller Unveils Crypto Tax Bill, Includes De Minimis Rules for Stablecoins
- Will Solana Price Hit $150 as Mangocueticals Partners With Cube Group on $100M SOL Treasury?
- SUI Price Forecast After Bitwise Filed for SUI ETF With U.S. SEC – Is $3 Next?
- Bitcoin Price Alarming Pattern Points to a Dip to $80k as $2.7b Options Expires Today
- Dogecoin Price Prediction Points to $0.20 Rebound as Coinbase Launches Regulated DOGE Futures
- Pi Coin Price Prediction as Expert Warns Bitcoin May Hit $70k After BoJ Rate Hike
- Cardano Price Outlook: Will the NIGHT Token Demand Surge Trigger a Rebound?
