The latest shift in the Bitcoin market coincided with a rebound in Bitcoin’s price following the release of United States inflation data, introducing volatility. On April 10, the Grayscale Bitcoin Trust (GBTC) experienced outflows of $17.5 million, contrasting sharply with the $154.9 million recorded on April 9.
This rise occurred after a dip to local lows of $67,482 following the March U.S. Consumer Price Index report, which raised concerns about potential delays in interest rate cuts by the U.S. Federal Reserve. Cryptocurrency industry observers express optimism for a possible slowdown in GBTC outflows, which have totaled $16 billion since the fund transitioned to a spot Bitcoin ETF in January.
Thomas Fahrer, CEO of the crypto-focused reviews portal Apollo, noted a significant drop in outflows on April 10 and questioned if the selling pressure on GBTC was over. Other BTC ETFs, including BlackRock IBIT, Fidelity FBTC, ARK’s ARKB, and Bitwise BITB, registered positive inflows on April 10, indicating potential market enthusiasm.
The upcoming halving event, which will halve the Bitcoin block issuance rate from 6.25 coins per block to 3.125, historically leads to a surge in Bitcoin’s price due to reduced supply growth. With the current enthusiasm around spot Bitcoin ETFs, the market anticipates even greater demand, potentially intensifying the rally.
Experts indicate that the current bullish market is mainly driven by the growing demand rather than the halving’s supply cut. Andras Kristof, CEO and co-founder of Galaxis, highlighted the impact of the current enthusiasm for spot BTC ETFs, expressing that if demand remains high, it will add to the daily buying pressure, suggesting that there is potential for further price increases.
