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Outflows Rollercoaster: Bitcoin Price Rebounds as GBTC Outflows Take a Nosedive

GBTC outflows plunge amid Bitcoin's price recovery

The Grayscale Bitcoin Trust (GBTC) has experienced a significant drop in outflows, reaching a new record low on April 10. This development coincides with a rebound in Bitcoin's price following the release of new U.S. inflation data, which had initially triggered market volatility.

Key takeaways:

  • GBTC outflows decreased by nearly 90% to $17.5 million on April 10.
  • Bitcoin's price has recovered, rising 2.08% in the past 24 hours to $70,474.

On April 10, GBTC recorded outflows of just $17.5 million, a substantial decrease of almost 90% compared to the $154.9 million outflows observed on April 9, according to Farside data. This new record low in outflows coincides with a 2.08% increase in Bitcoin's price over the past 24 hours, with the cryptocurrency currently trading at $70,474, as per CoinMarketCap data.

The release of the U.S. Consumer Price Index (CPI) for March, which came in at 3.5% year-on-year, had initially caused concern among investors, leading to a brief dip in Bitcoin's price to local lows of $67,482. The worry stemmed from the possibility that the Federal Reserve might further delay interest rate cuts in response to the inflation data. However, Bitcoin has since recovered, and the significant decrease in GBTC outflows has caught the attention of the crypto community.

Crypto community hopeful as GBTC outflows slow, other ETFs see inflows

The recent drop in GBTC outflows has sparked optimism among some crypto commentators, who are suggesting that it could mark the beginning of a slowdown in the trust's outflows. Since GBTC was converted to a spot Bitcoin ETF in January, it has seen a total of $16 billion in outflows.

Thomas Fahrer, CEO of crypto-focused reviews portal Apollo, took to X (formerly Twitter) to share his thoughts with his 41,500 followers. "GBTC selling over?" he asked in an April 11 post, highlighting that the April 10 outflows were equivalent to roughly 250 Bitcoin, representing a 95% decrease in outflows compared to the start of the week. Just days earlier, on April 8, Grayscale had witnessed outflows equivalent to 4,288 Bitcoin, totaling $303 million.

The previous low in GBTC outflows was recorded on February 26, when the trust experienced $22.4 million in outflows. Over the past four months, the daily average of GBTC outflows has been $257.8 million, making the April 10 figure of $17.5 million approximately 15 times lower than the average.

While GBTC has been experiencing outflows, other Bitcoin ETFs have seen inflows. The Fidelity Wise Origin Bitcoin Fund (FBTC) recorded $76.3 million in inflows, followed by iShares Bitcoin Trust (IBIT) with $33.3 million, Bitwise Bitcoin ETF (BITB) with $24.3 million, and ARK 21Shares Bitcoin ETF (ARKB) with $7.3 million in inflows.

In related news, the bankrupt crypto lending firm Genesis recently offloaded approximately 36 million GBTC shares to acquire 32,041 Bitcoin, further highlighting the ongoing developments within the crypto industry.