Bitcoin Spot ETF Outflows surged this week and saw the week characterized by price drops across the crypto space. These outflows, as before, are being led by the Grayscale Spot ETF as investors believe its fees are too high. This led to four consecutive weeks of departures, which is the second time this has happened since Spot ETFs were approved for negotiation. So where does the price of Bitcoin go from here?
Bitcoin Spot ETFs reach 4 consecutive days of outflows
The departures began on Monday and continued in the following days. So far, the largest single-day outflow occurred on Tuesday, March 19, with the day’s total net inflow reaching $326.2 million, a new record for Bitcoin funds.
Subsequent days recorded lower numbers in terms of global net flows, but they remain negative. On Wednesday, net flows were $261.5 million, and on Thursday, March 22, net flows reached $94 million. This marked the second time that the Spot Bitcoin ETFs are seeing four consecutive days of departures this year.
The vast majority of these outflows, as mentioned above, come from the Grayscale Bitcoin ETF. In the last day alone, the fund recorded outflows of 5,900 BTC, which translates into US$339 million at current prices. So, over the last week, Coinglass data show that 28,207.5834 BTC left the fund, causing its total BTC under management to drop 7.35% in one week.
Other funds also recorded outflows during this period, but to a much lesser extent. For example, the Invesco Galaxy Bitcoin ETF saw the second largest outflow of all funds, but only 667 BTC left the fund on the last day. The WisdomTree Bitcoin Fund recorded 10.8.2635 BTC in outflows, while all other outflow values were below 100 BTC.
What happened to BTC last time?
The last time that Spot Bitcoin ETFs saw four consecutive days of departures was in January, lasting from January 22nd to January 25th. This also bears some similarities to the current exit trend in some countries, one of which was exits starting at the beginning of the week and carried out until the end of the week. end.
However, one difference between the two tenses is that the ETFs had just started trading with trading days fluctuating between inflows and outflows. Meanwhile, the current trend has come after nearly two consecutive weeks of inflows, something that could have an impact on the price of BTC going forward.
In January, after four days, departures began to slow down and, on Friday, there was a change of direction, with entries beginning to dominate. Once the tide turned and ETF Inflows started to rise, the price of BTC followed sharply.
With the rise came a more established recovery in the price of Bitcoin, taking it from $40,000 to over $70,000 in the space of two months. If this trend repeats itself and influences Spot BTC ETFs overcome the outflows, the price of BTC is expected to start rising again. However, if the outflows continue, the price of BTC could suffer further declines.
BTC price drops below $65,000 | Source: BTCUSD on Tradingview.com
Featured image of 20-minute chart from Tradingview.com
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