Bitcoin price clear for new record as GBTC withdrawal drops to $170M.
Bitcoin (BTC) may be seeing a “momentum reversal” as institutional BTC flows decline.
The latest data sources, including UK-based investment firm Farside, reveal that Greyscale Bitcoin Trust (GBTC) lost $170 million on March 22.
BTC Price Consolidation Before All-Time High Test?
US spot bitcoin exchange traded funds (ETFs) have been in the spotlight this week for all the wrong reasons.
Compared to the beginning of March, inflows have decreased significantly, with GBTC inflows reaching record highs, resulting in a net decrease in assets under management (GBTC) for five consecutive days.
The timing doesn't seem random – Cointelegraph reports that bankrupt crypto lender Genesis was said to be selling its GBTC position within the week.
If this were to conclude now, the downward pressure on ETF trends could ease.
“Net flows from Bitcoin ETFs fell to -$51.6M, helped by a big slowdown in GBTC sales,” investor and entrepreneur Alistair Milne said on X (formerly Twitter) about the flows.
“Momentum turning?”
The pivot point theory is also shared by statistician Willie Woo, creator of the on-chain data resource Woobull.
In a recent X post, Woo showed a new model comparing ETF earnings to BTC price action. While it did not provide specifics on which data will be used for the cut, it did suggest that the most aggressive download phase may be over.
“Based on the new model I've been playing with, the worst of the sales at this early stage of the consolidation may be over,” he opined.
“I expect consolidation to go as far as half, with further cuts through April.”
Anonymous commentator WhalePanda concurred in his view.
In his own review of weekly flows, he remained bullish on BTC's recent price action, suggesting that a tailwind could apply next week to reverse price gains.
“Now we'll probably complete a side-by-side weekend next week before heading to a new ATH,” he wrote.
“A lot of people are shaken up, a lot of people have low expectations. In the current release schedule we need $57.6 million in revenue to collect the $64k daily coins. Less than a month later, it halved to $28.8 million.
GBTC is Bitcoin's “biggest headwind”.
Others have been more critical of GBTC, which now holds only half the AUM it had when it converted to the ETF in January.
RELATED: Bitcoin Price Retests $63K Despite GBTC Outflows Falling Below $100M
“When GBTC has zero AUM, the entire ecosystem will be much healthier,” argued crypto author and educator Vijay Boyapati on March 23.
“It was the product at the center of the 2022 market crash and the net outflow is now the product that is the biggest windfall for Bitcoin.”
As a whole, the space Bitcoin products represent the most successful ETF launch in history. Since they started trading, cumulative inflows have reached $12.15 billion.
Earlier, Kathy Wood, CEO of one of the ETF providers, Arch Invest, said that much of the institutional exposure is still to come.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
