As withdrawals from Grayscale's Bitcoin ETF (GBTC) have decreased, the price of Bitcoin (BTC) has risen above $67,000.
For the third day in a row, less than $100 million was taken out of GBTC on Thursday, with withdrawals totaling $79.3 million.
Grayscale had withdrawals on Tuesday and Wednesday of $81.9 million and $75.1 million, respectively. This is a significant decrease from the $302.6 million that was recorded on Monday.
Net Inflows Into Bitcoin ETFs
Amidst decreasing Grayscale outflows, spot Bitcoin ETFs have also experienced net inflows over the last three days.
Even excluding the Fidelity ETF FBTC data, which is currently unavailable, the total net outflow for Bitcoin spot ETFs on Thursday was $106 million.
A net inflow of $144 million was recorded in BlackRock's ETF IBIT, and additional inflows of $40 million were recorded in other ETFs.
The top cryptocurrency is currently trading at over $67,000, having increased by nearly 2% in the last 24 hours.
Matteo Greco, Research Analyst at digital asset firm Fineqia International, wrote in a note that "while there is still strong overall net inflow in BTC Spot ETFs, there is also evidence of reduced sustained demand and some profit-taking, leading to a slower pace of cumulative inflows compared to previous months."
"This is expected, given that BTC was priced between $40,000 and $45,000 at the time of their launch, and the fact that the majority of investors in BTC Spot ETFs are already profitable."
Analysts Are Upbeat About Bitcoin Before It Halts
It's interesting to note that the price spike occurred only a few weeks prior to the anticipated 17-day Bitcoin halving event.In fact, experts predict that Bitcoin will hit $75,000 before the halving.
According to Greco, "BTC halving events have historically marked significant points followed by 9–18 months of uptrend, culminating in cycle peaks."
He did point out that this cycle was different from others in that BTC reached its all-time high ahead of the halving for the first time.
The profitability of mining farms has been steadily declining over the past few years due to a decrease in BTC block rewards and a consistent rise in BTC hashrate. This has made better capital efficiency necessary for mining farms to remain viable, according to Greco.
April 2024, Cryptoniteuae