đBitcoin's Remarkable 10% Surge Defies $742 Million ETF Loss!đ”đ°
Understand what's driving this unstoppable rally.
$BTC defied market expectations yet again as it surged nearly 10% on Wednesday, brushing off the significant outflows from US-listed spot Bitcoin Exchange-Traded Funds (ETFs). This week alone witnessed a staggering $742 million being pulled out from these funds, with a single-day withdrawal of $261.5 million recorded on March 20.
Despite the outflows, Bitcoin's resilience shone through. While the Grayscale Bitcoin Trust (GBTC) and Invesco Galaxy Bitcoin ETF (BTCO) experienced major losses with $386.6 million and $10.2 million exiting respectively, other approved funds saw only modest inflows that barely made a dent in the overall outflow scenario.
The recovery in Bitcoin's price, bouncing back from a dip to $60,775 to reach a high of $68,100 on Wednesday and settling around $66,640 on Thursday, coincided with Federal Reserve Chair Jerome Powell's dovish stance. The Fed's commitment to maintaining its projection for three rate cuts this year, despite rising inflation, provided additional support.
The disconnect between ETF outflows and Bitcoin's price surge sheds light on the complex interplay between institutional movements and cryptocurrency valuations. Bitcoin's strong demand underscores its ability to withstand negative institutional pressures.
Also, data from CryptoQuant analysts reveals that the current influx of investment from short-term holders represents only 48% of total Bitcoin investment, well below historical levels seen at the end of previous bull cycles (typically between 84% to 92%). Additionally, metrics like the CryptoQuant P&L Index remain above the typical market top zone, indicating that Bitcoin's valuation hasn't reached levels that traditionally precede a market downturn.
In summary, despite the turbulence in the market and significant ETF outflows, Bitcoin's resilience and underlying market dynamics suggest that the bull run still has plenty of steam left.
