26th April experienced a dip in US Bitcoin ETF outflows for the third consecutive day, indicating a decline in investor interest and contributing Bitcoin wobble around the $63,000 mark. Recent data illustrates a tumultuous scenario characterized by mixed signals and notable outflows.
According to data from Spot On Chain X post, US Spot Bitcoin ETFs experienced a significant net outflow of $83.6 million on the preceding trading day. Notably, this amount is lower than the net outflow of $217.6 million recorded on April 25th. This financial trend comes after a period of recovery and highlights the ongoing volatility in investor sentiment within the cryptocurrency market.
One prominent entity in this arena, Grayscale’s GBTC, bore witness to a substantial outflow amounting to $82.4 million, indicative of a discernible absence of interest from institutional investors.
Analysis suggests that the causes behind these ETF outflows are multifaceted, stemming from a combination of contributing factors. These include the culmination of monthly options expiry, escalating apprehensions surrounding rising inflation rates (as measured by the Personal Consumption Expenditures Index or PCE), and uncertainties revolving around the DTCC’s recent revision on collateral valuations for crypto-asset ETFs. DTCC decided to not to assign collateral value for the ETFs with exposure to Bitcoin and other cryptocurrencies . The recent revision caused some concern in the financial sector, although some analysts including, Caitlin Long, Custodia Bank CEO, believe it will benefit the market in the long run.
The performances exhibited among individual spot Bitcoin ETFs were a mixed bag. Notably, the Ark 21Shares Bitcoin ETF (ARKB) stood out as a lone bright spot, boasting an inflow of $5.4 million, potentially attributable to anticipated purchasing activities from ARK funds. Conversely, Fidelity (FBTC) and Bitwise (BITB) experienced outflows amounting to $2.8 million and $3.8 million, respectively. BlackRock (IBIT) and several other ETFs, however, reported zero net flows, raising concerns regarding the overarching sentiment among retail investors.
Despite the persisting ETF outflows, there was a slight deceleration in the pace of outflows observed within Grayscale’s GBTC. The outflow from GBTC decreased from $139.4 million to $82.4 million compared to the preceding day, with the cumulative outflow from GBTC presently standing at $17.14 billion.
Currently, Bitcoin is priced at $63,10.83, marking a 2.20% decline in the past 24 hours. However, this price is a result of the bounce back from its recent low of $62,581.52. Despite this temporary dip, analysts remain hopeful, predicting a potential recovery in the coming week. Notably, Bitcoin’s past halving events have been accompanied by short-term price drops before eventual surges.
Furthermore, the Federal Reserve’s ongoing interest rate hikes are beginning to exert discernible pressure on the financial sector, with Republic First Bank emerging as the initial regional bank to feel its effects.
In summation, the Bitcoin market is navigating through a landscape rife with conflicting signals. While the occurrence of ETF outflows and price dips prompts apprehension, certain analysts remain steadfast in their confidence regarding a prospective rebound.
Also See: Bitcoin Price Slip Causes Crypto Long Liquidation
