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Bitcoin Surges 10% Despite $742 Million in ETF Outflows

2 mins
Updated by Harsh Notariya
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In Brief

  • Bitcoin value rises nearly 10% despite $742 million ETF outflows, defying bearish expectations.
  • Grayscale Bitcoin Trust, Invesco Galaxy ETF see major withdrawals; yet market remains resilient.
  • Despite ETF outflows, Bitcoin's strong demand and optimistic metrics indicate a continuing bull cycle.
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Bitcoin’s (BTC) value surged by nearly 10% on Wednesday. This rise defied the prevailing trend of net outflows from US-listed spot Bitcoin Exchange-Traded Funds (ETFs).

These funds have seen a significant withdrawal of approximately $742 million this week. Notably, a substantial outflow of $261.5 million occurred on March 20 alone.

Why is The Bitcoin Bull Cycle Far From Over?

Farside Investors provided data showing a stark contrast between inflows and outflows within the sector. The Grayscale Bitcoin Trust (GBTC) and Invesco Galaxy Bitcoin ETF (BTCO) experienced the most significant losses, with $386.6 million and $10.2 million exiting, respectively.

Consequently, the modest inflows into other approved funds barely made a dent in the overall outflow scenario.

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

DateIBITFBTCBITBARKBBTCOEZBCBRRRHODLBTCWGBTCTotal
March 18451.55.917.62.70.00.04.85.70.0-642.5-154.3
March 1975.239.62.50.00.00.00.00.00.0-443.5-326.2
March 2049.312.918.623.3-10.219.02.99.30.0-386.6-261.5
Bitcoin ETF Flow Table. Source: Farside Investors

Despite these hefty capital outflows, Bitcoin’s market performance has been remarkably resilient. After a dip to $60,775 on Wednesday, BTC rebounded to a high of $68,100. It later adjusted to $66,640 during early Thursday.

This recovery occurred as Federal Reserve Chair Jerome Powell expressed a dovish stance. Additionally, the Fed maintained its projection for three rate cuts this year, even amidst rising inflation.

The market dynamics of ETF outflows contrasted with Bitcoin’s price surge illuminate the intricate relationship between institutional movements and cryptocurrency valuations. While ETF outflows might usually indicate bearish sentiment, Bitcoin’s robust demand suggests a different story, highlighting its capacity to withstand negative institutional pressures.

Additionally, analysts from CryptoQuant have provided a longer-term outlook, indicating that the Bitcoin bull cycle is far from over. The firm’s data suggests that the current investment influx from short-term holders comprises 48% of total Bitcoin investment. Historically, the end of a bull cycle sees this figure between 84%-92%.

Moreover, valuation metrics such as the CryptoQuant P&L Index remain outside the typical market top zone, maintaining a position above the 1-year moving average.

Read more: Bitcoin Price Prediction 2024/2025/2030

Bitcoin P&L Index
Bitcoin P&L Index. Source: CryptoQuant

This indicates that despite the market’s volatility and the ETF outflows, Bitcoin’s valuation is not in the territory that traditionally signifies an imminent market downturn.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Harsh Notariya
Harsh Notariya excels in delivering SEO-optimized crypto news under tight deadlines. Previously, as a Growth Marketer at Sporty and a Community Consultant at Totality Corp, he significantly boosted community engagement and followers. Harsh also crafted engaging content for top crypto influencer Shivam Chhuneja, blending meme references for an educational yet fun experience. His versatile skills make him a notable figure in crypto journalism.
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