In a notable financial turn, the Bitcoin market witnessed a significant resurgence, closely tied to the diminishing outflows from the Grayscale Bitcoin Trust (GBTC). On April 10, the outflow from GBTC drastically reduced to $17.5 million, marking an almost 15-fold decrease from its average daily outflows over the previous four months. This remarkable decrease—nearly 90% from the day prior—occurred alongside a sharp rebound in Bitcoin's value, amidst fluctuating market sentiments triggered by the latest U.S. inflation data.
Bitcoin's valuation experienced a notable increase of 2.08% in the past 24 hours, with its price stabilizing at $70,474, according to CoinMarketCap. This uptick in value comes after Bitcoin briefly dipped to $67,482 following the announcement of the U.S. Consumer Price Index (CPI) for March, which reported a 3.5% increase year-on-year. This data led to concerns over the Federal Reserve potentially postponing interest rate cuts, stirring volatility in the crypto markets.
The significant reduction in GBTC outflows has sparked optimism among cryptocurrency analysts and enthusiasts. Since the conversion of GBTC into a spot Bitcoin ETF in January, it has experienced a total of $16 billion in outflows. However, the recent decrease has led some, including Apollo CEO Thomas Fahrer, to speculate whether this marks the end of the selling trend. Fahrer highlighted that the outflows on April 10 amounted to an equivalent of roughly 250 Bitcoin—a 95% drop from earlier in the week.
Just days before this downturn, on April 8, Grayscale saw outflows equating to 4,288 Bitcoin, totaling $303 million. This was in stark contrast to the previous record low on February 26, when GBTC reported outflows of $22.4 million. Over the past four months, the daily average outflow from GBTC stood at $257.8 million.
In the midst of these developments, other Bitcoin funds have also seen movements. The Fidelity Wise Origin Bitcoin Fund (FBTC) reported $76.3 million in inflows, with the iShares Bitcoin Trust (IBIT), Bitwise Bitcoin ETF (BITB), and ARK 21Shares Bitcoin ETF (ARKB) also witnessing significant inflows.
Adding to the market dynamics, the bankrupt crypto lending company Genesis recently sold approximately 36 million GBTC shares to acquire 32,041 Bitcoin. This transaction further underscores the shifting landscape of the cryptocurrency market, as stakeholders navigate through the complexities of regulatory, economic, and market pressures.
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