rayscale GBTC Outflows Drive Bitcoin Price to $64K

Bitcoin (BTC) has fallen below $63,000 amid a broader cryptocurrency sell-off, with Grayscale Bitcoin Trust (GBTC) outflows playing a significant role.

Key Points:

  • BTC has dropped 3.7% in the past 24 hours, trading at $64,000.
  • Grayscale Bitcoin Trust (GBTC) has experienced massive outflows, totaling over $830 million this week.
  • U.S.-listed spot bitcoin ETFs have seen four consecutive days of net negative flows.
  • Coinbase analysts believe inflows to ETFs will resume once GBTC selling is complete, supported by favorable macro conditions.

Market Overview

The crypto market has been volatile in recent days, with BTC correcting from its all-time high of $73,000. Despite a brief rally on Wednesday, the price has remained under pressure.

The broader CoinDesk 20 Index has also declined by 4.4%, with Solana's SOL token experiencing a particularly sharp drop.

Grayscale Bitcoin Trust Outflows

GBTC has been a major source of selling pressure on BTC. The trust has seen $94 million in outflows on Thursday alone, contributing to the negative flows in spot bitcoin ETFs.

Analysts attribute the increased GBTC selling to Genesis selling shares as part of its bankruptcy process.

ETF Inflows Expected to Resume

Despite the recent outflows, Coinbase Institutional analysts remain optimistic about the long-term prospects for spot bitcoin ETFs. They believe that inflows will resume once GBTC selling is complete, given favorable macro conditions and central bank policy.

Industry Commentary

Mike Novogratz, CEO of Galaxy Digital, believes it will take time for BTC to recover to $73,000. He made this statement during a panel discussion at Bitcoin Investor Day in New York.

Grayscale Bitcoin Trust outflows have contributed to the recent decline in BTC price. However, analysts expect inflows to resume once GBTC selling is complete, supported by positive macro conditions. The market remains volatile, and investors should exercise caution when making investment decisions.