The Bitcoin ETFs experienced a significant outflow of $200 million, raising concerns about the cryptocurrency’s ability to sustain its $69,000 support level. This unexpected dip in price came after a week of bullish sentiment, with minimal capital inflows seen in U.S. spot Bitcoin ETFs and a $300 million outflow from Grayscale Bitcoin Trust (GBTC). Despite this, larger ETFs like BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC) continued to attract inflows, indicating a mixed sentiment among investors.
The outflow occurred in the wake of Genesis, a bankrupt crypto lender, completing a multi-billion-dollar offloading of GBTC shares, leading market analysts and traders to closely monitor Bitcoin’s price movement for signs of recovery or further decline. Some are predicting a potential drop to $60,000 or below before any significant rebound. The cryptocurrency community remains divided on the short-term trajectory of Bitcoin’s price, with factors like profit-taking and the upcoming U.S. tax day potentially influencing investor decisions.