The price of Bitcoin has surged above $67,000 amid declining outflows from Grayscale’s Bitcoin ETF. GBTC saw outflows of $79.3 million on Thursday, marking the third consecutive day of less than $100 million in withdrawals. Grayscale also saw outflows of $81.9 million and $75.1 million on Tuesday and Wednesday, respectively, a decline from the $302.6 million recorded on Monday. Bitcoin spot ETFs have seen net inflows over the past three days, with a combined net outflow of $106 million on Thursday. BlackRock’s ETF IBIT saw a net inflow of $144 million, with other funds registering another $40 million in inflows. Overall, Bitcoin spot ETFs have attracted a cumulative net inflow of $12.3 billion.
The positive flows in Bitcoin ETFs coincide with a surge in the price of Bitcoin, which reached as high as $69,291 before trimming gains. The leading cryptocurrency is currently trading at around $67,000, up by almost 2% over the past day. There is evidence of reduced sustained demand and profit-taking, leading to a slower pace of cumulative inflows compared to previous months, as many BTC Spot ETF investors are already in profit. Analysts are bullish on Bitcoin ahead of the upcoming halving event, expecting Bitcoin to reach $75,000 by then. Historically, BTC halving events have marked significant points followed by 9-18 months of an uptrend, culminating in cycle peaks. It is anticipated that an uptrend will continue for the remaining nine months of 2024, leading to a cycle peak expected between Q4 2024 and Q2 2025.
The upcoming halving event, set to occur in 17 days, 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. This situation brings the need for greater capital efficiency to remain viable. Grayscale’s tapering back of outflows this past week has contributed to a more even-keeled flow of inflows as well as decreased volatility. The recent price uptick in Bitcoin is likely due to spikes in open interest with leverage players, necessary to flush in both sides.
Spot Bitcoin ETFs saw approximately $850 million in net inflows last week, followed by $85 million in outflows on April 1 and $40 million in inflows on April 2. The surge in the price of Bitcoin is seen as investors taking advantage of the opportunity to make profits while BTC is still in a profitable range. The surge in price and positive flows in Bitcoin ETFs set the stage for a potentially bullish trend leading up to and following the halving event. The upcoming halving event is expected to bring significant changes in the Bitcoin ecosystem, impacting mining companies and investors alike. Analysts expect that the uptrend in Bitcoin will continue for the next nine months, potentially leading to a cycle peak in the latter half of 2024 or early 2025.
