GBTC Outflows Slow Down
The outflows from GBTC have been driven by the actions of FTX crypto exchange, which sold off about two-thirds of its 22.3 million GBTC shares in a three-day period. FTX still holds around 8 million shares worth about $281 million. However, recent data suggests that the outflows from GBTC may be slowing down.
According to Grayscale’s website, there are currently 600.5 million outstanding shares, representing a trust holding of 536,694.9 Bitcoin. Since January 10th, a total of 82,525 Bitcoin has left the GBTC platform.
Analyst Predicts Further Price Correction
A Bitfinex analyst noted that with the BTC price falling and staying below $43,000, more than half of the profits made by short-term holders have been wiped out. The analyst suggests that given these circumstances, a significant price correction below current levels would not be surprising.
“As bearish sentiment prevails, the next crucial support levels for BTC are estimated to be between $38,000 and $36,000.”
Hot Take: GBTC ETF Sees Another $515M in Outflows as Bitcoin Price Remains Below $40k
GBTC reported $515 million in outflows on January 23, bringing the total outflows to $3.4 billion since its conversion to a spot ETF earlier this month. In contrast, nine other recently approved spot Bitcoin ETFs saw a total of $249 million in inflows. The approval of spot ETFs by the US SEC has caused Bitcoin to lose all its gains and trade below $40,000. The cryptocurrency’s market cap has decreased by nearly $200 billion. At the time of writing, Bitcoin is trading at $39,700.
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