Bitcoin Surges as Grayscale Sees Less Than $100M in Outflows for Third Consecutive Day

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The price of Bitcoin (BTC) has surged above the $67,000 mark amid declining outflows from Grayscale’s Bitcoin ETF (GBTC).

According to data from Farside, GBTC saw $79.3 million in outflows on Thursday, marking the third consecutive day of less than $100 million in withdrawals. 

Grayscale saw outflows totaling $81.9 million and $75.1 on Tuesday and Wednesday, respectively, a notable decline from $302.6 million recorded on Monday. 

Bitcoin ETFs See Net Inflows

Spot Bitcoin ETFs have also seen net inflows over the past three days amid declining Grayscale outflows. 

On Thursday, the combined net outflow for Bitcoin spot ETFs reached $106 million, even without considering Fidelity’s ETF FBTC data which is not available as of this writing. 

BlackRock’s ETF IBIT saw a net inflow of $144 million, with other funds registering another $40 million in inflows. 

Last week, Spot Bitcoin ETFs saw approximately $850 million in net inflows, followed by $85 million in outflows on April 1 and $40 million in inflows on April 2.

Overall, Bitcoin spot ETFs have attracted a cumulative net inflow of $12.3 billion.

inflow slowed down however still pretty even keeled as grayscale simultaneously tapered back their outflows this past week..

volatility in price more or less this week likely more caused by spikes in open interest with leverage players that are necessary to flush in both sides https://t.co/NFtvL4PSuZpic.twitter.com/oSl1xUccJ6

— Nexus_BladeRunner (@NXS_BladeRunner) April 5, 2024

The positive flows in Bitcoin ETFs coincide with a surge in the price of Bitcoin, which surged to as high as $69,291 over the past day before trimming gains. 

As of now, the leading cryptocurrency is trading at around $67,000, up by almost 2% over the past day. 

“While there is still strong overall net inflow in BTC Spot ETFs, there is also evidence of reduced sustained demand and some profit-taking, leading to a slower pace of cumulative inflows compared to previous months,” Matteo Greco, Research Analyst at digital asset firm Fineqia International wrote in a note.

“This is to be expected, considering that the majority of BTC Spot ETF investors are already in profit, given that BTC was priced between $40,000 and $45,000 at the time of their launch.”

Analysts Bullish on Bitcoin Ahead of Halving

Interestingly, the recent price uptick comes just weeks before the upcoming Bitcoin halving event, which is expected to occur in 17 days. 

In fact, analysts expect Bitcoin to reach $75,000 by the halving event.

“Historically, BTC halving events have marked significant points followed by 9-18 months of uptrend, culminating in cycle peaks,” Greco wrote. 

However, he noted that, for the first time, BTC reached its all-time high in anticipation of the halving, indicating a departure from previous cycles. 

“If historical patterns repeat, we may witness an uptrend for the remaining nine months of 2024, leading to a cycle peak expected between Q4 2024 and Q2 2025.”

Meanwhile, the halving event will also impact mining companies.

With BTC block rewards decreasing and the BTC hashrate consistently rising over the past few years, the profitability of mining farms has steadily declined, bringing the need for greater capital efficiency to remain viable, Greco said. 

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