Bitcoin ETFs Outflows Slow Down as Market Recovers
After experiencing significant losses and dropping to $56,500, bitcoin managed to bounce back on Thursday and early Friday amidst a slowdown in outflows from spot bitcoin exchange-traded funds (ETFs) in the US compared to the previous dayโs record outflows.
BlackRockโs IBIT and Fidelityโs FBTC
- No new flows observed on Thursday
- Spot bitcoin ETFs experienced net outflow of $34.4 million on May 2nd
Prominent ETF Analystโs Perspective
- Zero inflows do not indicate product failure
- Normal occurrence in the ETF market
Grayscaleโs GBTC and Other ETFs
- GBTC saw a net outflow of $55 million
- Ark Investโs ARKB led daily net inflows with $13 million
- Combined inflows of $6 million from other ETFs
Record Level Outflows
- Largest outflows recorded exceeding $563 million
- FBTC experienced $191 million outflows surpassing GBTC
Bitcoin Bounces Back
Market sentiment appears positive as bitcoin witnessed a modest 3% gain, pushing its price above $59,300 following FOMCโs dovish stance. Chairman Jerome Powellโs announcement during the FOMC meeting that the Fed is not considering rate hikes and reducing Quantitative Tightening (QT) from $60 billion monthly to $25 billion contributed to this recovery.
Furthermore, the Treasuryโs decision to maintain issuances for longer maturities unchanged in the QRA alleviates concerns about a surge in longer-term yields. This strategy is anticipated to suppress the rally of the US dollar, which is favorable for risk assets like bitcoin and other cryptocurrencies.
Hot Take: Bitcoin on the Path to Recovery
The recent market movements and the slowdown in ETF outflows indicate a potential recovery for bitcoin. With positive developments in the broader financial landscape, including the dovish stance of the Fed, the cryptocurrency market seems to be regaining traction. Stay tuned for further updates!
Sources:
โ https://twitter.com/JSeyff/status/1780243642851995735
โ https://sosovalue.xyz/assets/us-btc-spot
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