In a surprising turn of events, Bitcoin ETFs witnessed a substantial outflow of $200 million, casting doubt on the cryptocurrency’s ability to maintain its newfound $69,000 support level. On April 9, Bitcoin’s price dipped below $70,000, a stark contrast to the bullish sentiments that dominated the weekly close. The trading day was notably sluggish, with the U.S. spot Bitcoin exchange-traded funds (ETFs) seeing minimal capital inflows and the Grayscale Bitcoin Trust (GBTC) experiencing a $300 million outflow. Despite the negative net flows, the largest ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC), managed to maintain their streak of inflows, suggesting a mixed sentiment among investors.
The unexpected outflow occurred amidst a backdrop of market anticipation for improved net flows following Genesis, a bankrupt crypto lender, announcing its completion of a multi-billion-dollar offloading of GBTC shares. Market analysts and traders are now closely watching Bitcoin’s price movement for signs of recovery or further declines, with some predicting a potential dip to $60,000 or lower before any significant recovery. The cryptocurrency community remains divided on the short-term direction of Bitcoin’s price, with various factors such as profit-taking and the upcoming U.S. tax day potentially influencing investor decisions.
