Bitcoin (BTC) surged past the $63,000 mark on Binance at the close of Friday, driven by renewed capital inflows into immediate settlement Bitcoin exchange-traded funds (ETFs) in the United States.
The influx of capital into Bitcoin ETFs in the US resumed, propelling Bitcoin to $63,000 on Binance by the end of Friday's trading session. Notably, Grayscale's Bitcoin Trust ETF (GBTC) broke its streak of 80 days of capital outflows, attracting a substantial $63 million in capital inflows, according to Coinglass data.
As of the time of writing, Bitcoin was hovering around $62,900, marking a 6.5% increase over the past 24 hours, according to CoinGecko. The leading cryptocurrency had dipped below $57,000 earlier in the week ahead of the Federal Reserve's interest rate decision and FOMC meeting extension. However, it began its ascent after crossing the $61,000 threshold earlier in the day.
GBTC stands as the largest Bitcoin spot ETF with assets under management surpassing $18.7 billion. Prior to its transition to an ETF earlier this year, the fund held approximately 620,000 BTC. GBTC has been under pressure from investor withdrawals, especially since competing Bitcoin spot ETFs received approval in January. As of April 18, GBTC's holdings had been cut in half.
Bloomberg ETF analyst Eric Balchunas expressed surprise at GBTC's reversal of its long-standing capital outflow trend, stating, "We're back." While GBTC has seen recent gains, continuous outflows have allowed competitors like BlackRock's iShares Bitcoin Trust (IBIT) to narrow the gap. As of May 2, IBIT held $17.2 billion in Bitcoin assets under management.
The US Department of Labor reported that initial jobless claims remained steady at 208,000 for the week ending April 27, marking the lowest level since mid-February and signaling strength in the labor market. Additionally, the employment cost index rose by 4.2% in the first quarter compared to the same period last year, reinforcing investor confidence. This data has led traders to speculate that the Federal Reserve may consider cutting interest rates by late 2024, creating a favorable environment for risk assets like cryptocurrencies currencies.