Exclusive Insights into Bitcoin ETF Outflows
On Monday, April 1, the total flows into all nine combined turned negative once again. The outflows from the Grayscale Bitcoin ETF GBTC have surged, surpassing $300 million. Here are some exclusive insights into the recent Bitcoin ETF outflows:
Bitcoin ETFs Experience Net Outflows
Bitcoin spot ETFs collectively experienced a net outflow of $85.84 million on April 1. The Grayscale ETF GBTC recorded a significant single-day net outflow of $302 million. On the other hand:
- The BlackRock ETF IBIT saw a net inflow of $165 million
- Fidelity ETF FBTC witnessed a net inflow of $43.99 million
The cumulative net inflow for Bitcoin spot ETFs reached an impressive $12.04 billion, indicating sustained investor interest in this asset class, as per data from Farside Investors.
Market Correction and Halving Event Impact
Amidst the negative flows, the market has entered a sharp correction, with a 5.5% drop to $66,000. The broader cryptocurrency market has also seen strong liquidations in the past 24 hours. Interestingly:
- This correction precedes the upcoming halving event, just 19 days away
- Analysts’ expectations of BTC price touching $75,000 by the halving event might be impacted
Challenges Faced by Fed’s Monetary Policy
With the start of April, the crypto market’s retreat signals a slowdown in the recent rally, marked by Bitcoin’s surge to an all-time high. This shift reflects caution in global markets due to inflationary pressures in the US. Consequently:
- Investors are adjusting their expectations for looser monetary policies and interest rate cuts by the Federal Reserve
- Stefan von Haenisch highlighted a reduced interest in rate cuts from the Fed impacting the crypto sphere
This cautious sentiment has led to a broad sell-off affecting various sectors within the crypto market. Memecoin sectors, which have outperformed Bitcoin in the past six months, are notably influenced by this cautious mood.
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