BTC Price Rebounds Despite The Third Day of Outflows for Bitcoin ETFs
United States spot Bitcoin exchange-traded funds (ETFs) have experienced three consecutive days of total net outflows, with $261.5 million exiting the funds on March 20.
At the same time, the price of BTC has recovered, rising from under $61,000 to $67,000, indicating a 9% increase from the previous day.
Bitcoin ETFs Outflows Hit $742 Million in 3 Days
According to Farside Investors data, the three-day net outflows have reached $742 million, as March 18 and 19 witnessed respective net outflows of $154.3 million and $326.2 million.
On March 20, a substantial withdrawal occurred from the Grayscale Bitcoin Trust (GBTC), resulting in $386.6 million exiting the fund, serving as the primary driver of these outflows. Furthermore, the Invesco Galaxy Bitcoin ETF (BTCO) witnessed $10.2 million departing the fund, exceeding the minor inflows from the remaining eight approved ETFs.
On the other hand, BlackRock’s iShares Bitcoin Trust (IBIT) had its second-lowest net inflow day at $49.3 million, while the Fidelity Wise Origin Bitcoin Fund (FBTC) also had a relatively weak inflow day at $12.9 million.
This marks the second-highest net outflow day for the 10 ETFs, only surpassed by the $326.2 million outflow observed on March 19. Despite these numbers, market observers remain optimistic.
Popular commentator Dyme noted Bitcoin’s lack of reaction to the third consecutive day of outflows, suggesting a newfound resilience to ETF influences. Samson Mow, CEO of crypto adoption firm Jan3, predicted that all Bitcoin ETF outflows would eventually become inflows, advising investors to plan accordingly.
Bitcoin Rebounds After Decline
In the past week, Bitcoin declined from its record high of $73.8K on March 14, coinciding with the final month before the halving event. Historical data shows that BTC typically falls in the lead-up to the halving, and this pattern seems to be repeating in the final 30 days before the event.
Bitcoin has rebounded from the recent decline, reclaiming the $67,000 level from $61,000, signaling the continuity of the bullish trend. Despite approaching the weekly imbalance zone between $59,111 and $53,120, Bitcoin’s failure to retest these levels suggests a premature spike in buying pressure, similar to November 2021, when the asset hit its prior all-time high.
Additionally, BTC responded positively to commentary from the United States Federal Reserve, which opted to maintain interest rates at current levels. Following the Federal Open Market Committee (FOMC) meeting, Fed Chair Jerome Powell hinted at the possibility of rate cuts later in the year, further boosting Bitcoin sentiment.
As BTC rebounds, the broader crypto market is also experiencing a surge, with some altcoins outperforming Bitcoin. Cryptocurrencies like Floki, Pepe, Bitcoin Cash, Ethereum, and Dogecoin surged 38%, 14%, 17%, 10%, and 14%, respectively.
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