See More

GBTC Outflows Slow Down, Signaling Potential Turnaround for Bitcoin Market

2 mins
Updated by Harsh Notariya
Join our Trading Community on Telegram

In Brief

  • Bitcoin value rises 4% as GBTC records low daily outflow of $17.5 million, hinting at market turnaround.
  • Grayscale CEO sees equilibrium in GBTC after major outflows; crypto funds like IBIT, FBTC see gains.
  • Bitcoin rebounds to $70,000 amid market fluctuations and competitive pressures on Grayscale.
  • promo

Bitcoin’s value soared by over 4% as the Grayscale Bitcoin Trust (GBTC) witnessed its lowest daily outflow of $17.5 million on Wednesday.

This event marks a potential shift in the crypto market, reflecting a change in investor sentiment amidst volatile conditions.

Bitcoin ETF Flows Turn Positive For The First Time in the Week

Earlier in the week, GBTC faced substantial outflows totaling over $450 million. However, the outflow dramatically decreased by Wednesday, signaling a possible market stabilization.

Michael Sonnenshein, CEO of Grayscale Investments, hinted that these outflows are nearing an equilibrium, offering a glimmer of hope for the trust’s financial health.

“We do believe that the fund has started to reach a little bit of an equilibrium where some of those anticipated outflows, whether it was some of the bankruptcy selling, some investors perhaps undertaking switch trades, (are) largely behind us,” Sonnenshein said.

In contrast to GBTC’s situation, other cryptocurrency funds like BlackRock’s IBIT and Fidelity’s FBTC observed inflows, with IBIT attracting $33.3 million and FBTC leading at $76.3 million. Furthermore, Bitwise’s BITB and ARK 21Shares’ ARKB also experienced inflows, adding to the day’s total net inflow of $123.7 million.

That being said, the net flows turned positive for the first time during this week.

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

Bitcoin Price Performance
Bitcoin Price Performance. Source: TradingView

Grayscale has contended with increasing competition since the SEC approved new Bitcoin ETFs earlier this year. The entry of nine competitors has intensified the market dynamics, especially after the crypto industry’s downturn led to increased sell-offs from bankrupt firms aiming to liquidate their GBTC shares.

Moreover, Bitcoin’s pricing dynamics offered a rollercoaster experience. Following a brief dip to $67,500, the cryptocurrency rebounded to around $70,000.

This price action mirrored the broader market’s response to external factors such as CPI data releases and regulatory actions, like Uniswap’s receipt of a Wells Notice from the SEC.

Read more: What Happened at the Last Bitcoin Halving? Predictions for 2024

Specifically, the trading activity saw over $200 million in liquidations, with a near-even split between long and short positions. This activity highlighted the market’s reactive nature to external pressures and internal dynamics.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2264-1.png
Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...
READ FULL BIO
Sponsored
Sponsored