GBTC outflows will slow down, indicating a potential turnaround for the BTC market
The price of Bitcoin rose more than 4% after the Greyscale Bitcoin Trust (GBTC) saw a record low of $17.5 million in outflows on Wednesday.
This event indicates a potential shift in the crypto market, reflecting a change in investor sentiment amid volatile conditions.
Bitcoin ETF flows will be positive for the first time in a week
Earlier in the week, GBTC experienced massive outflows totaling over $450 million. However, exits eased sharply on Wednesday, indicating a possible market stabilization.
According to Michael Sonnenschein, CEO of Greyscale Investments, these flows are approaching equilibrium, which gives a bright outlook for the financial health of the trust.
“We believe the fund is starting to reach a little bit of a balance where some of the expectations are going to come out, whether it's the short-selling or some investors maybe doing some switch trades (mostly behind us),” Sonnenschein said. .
In contrast to GBTC's situation, other cryptocurrencies such as BlackRock's IBIT and Fidelity's FBTC have jumped in, with IBIT pulling in $33.3 million and FBTC leading the way with $76.3 million. In addition, Bitwise's BITB and ARK 21Shares' ARKB came in, adding $123.7 million to the day's total net income.
That being said, net flows turned positive for the first time this week.
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Grayscale has struggled with increasing competition since the SEC approved new Bitcoin ETFs earlier this year. The entry of nine competitors added to the market's volatility, especially after the crypto industry's downturn pushed up selling prices from insolvent companies looking to liquidate their GBTC stakes.
Moreover, Bitcoin's pricing volatility has provided a rollercoaster experience. Following a brief decline to $67,500, the cryptocurrency recovered to around $70,000.
This price action reflected the broader market response to external factors such as CPI data releases and regulatory actions such as Uniswap's acceptance of the Sec of Wales announcement.
Read more: What Happened in the Last Half of Bitcoin? Predictions for 2024
Specifically, the trading activity saw more than $200 million in liquidations, split evenly between long and short positions. This activity highlighted the market's response to external pressures and internal dynamics.
The post GBTC exit slows, a sign of potential change for the bitcoin market appeared first on BeInCrypto.
