Bitcoin Holds $71K Amid $830M GBTC Outflows, Eyes $75K

Bitcoin stabilizes near $71K amid $830M ETF outflows and market volatility, showing resilience to economic uncertainty.

By Bill Bullington

4/12, 06:00 EDT
Bitcoin / U.S. dollar

Key Takeaway

  • Bitcoin remains stable near $71K despite $124.9 million outflows from Grayscale Bitcoin Trust (GBTC).
  • Weekly ETF outflows total $227.9 million, with market speculation on GBTC's impact on BTC prices.
  • Market bets favor BTC reaching $75,000 by end of April at a 60% probability, with a 32% chance for $80,000.

Bitcoin's Volatile Journey

Bitcoin (BTC) has experienced a tumultuous period, with its price fluctuating significantly in recent weeks. After reaching an all-time high of over $73,000, BTC faced a sharp decline, dropping below $63,000 at one point, before modestly rebounding to around $64,000. This volatility comes amid a backdrop of large outflows from the Grayscale Bitcoin Trust (GBTC), which saw $359 million exit on Thursday alone, contributing to a weekly total of over $830 million in outflows from spot ETFs. Mike Novogratz, CEO of Galaxy Digital, commented on the situation, stating, "[It] will take some time before we take out that $73,000 again," highlighting the market's current instability.

ETF Outflows and Market Pressure

The crypto market has been significantly impacted by the continuous outflows from GBTC and other U.S.-listed spot bitcoin ETFs. These outflows have not only put selling pressure on BTC, driving down prices but have also led to a broader market downturn, with the CoinDesk 20 Index falling by 4.4%. Analysts at Coinbase Institutional have linked the increased selling of GBTC shares to Genesis's bankruptcy process, suggesting that once these sales conclude, inflows to ETFs could resume amid favorable macro conditions and central bank policies. Despite these challenges, some market participants remain optimistic, with Nathanaël Cohen of INDIGO Fund noting, "order books are loaded on the bid side around the 60k area," indicating a potential market recovery.

Bitcoin's Response to Economic Indicators

Despite the market's recent downturn, Bitcoin has shown resilience in the face of economic uncertainty. Following a higher-than-expected U.S. CPI report, BTC demonstrated strength, only retracting slightly to $67,000. Semir Gabeljic of Pythagoras Investments observed that the market is pricing in two rate cuts for the remainder of 2024, a sentiment echoed by bettors on Polymarket. This cautious optimism is further supported by the quick market recovery post-CPI announcement, with Bitcoin and other digital assets like Ether showing gains in subsequent trading sessions.