In a recent mail On social media platform
In a recent mail On social media platform
Balchunas added that there are “bigger forces at play” and pointed to the fact that Bitcoin price action does not always correlate with ETF flows.
Grayscale’s record departures
This comes as Grayscale is experiencing a “second wind” of departures, as Balchunas noted. On Wednesday, it poured in another $281.57 million.
Notably, Grayscale outflows are outpacing dwindling inflows of new Bitcoin ETF issuers by the largest amount since their launch.
Grayscale’s Bitcoin holdings have now plummeted by more than 40% after the launch of a host of Bitcoin ETFs on January 11.
Net outflows from US issuers are approaching $749 million from the start of the week to date.
In fact, Grayscale’s GBTC has seen the largest capital outflows in history for any ETF.
No correlation?
Despite significant outflows from GBTC, Bitcoin price managed to record a surprising recovery on Tuesday, surpassing $68,000.
As Guru-Investingreported, the lack of toughness in comments made by Federal Reserve Chairman Jerome Powell sent cryptocurrency prices up sharply. Powell has reassured the market on the prospects of a rate cut, causing several risk assets to reduce losses. Before that, Bitcoin price fell below the $61,000 level.
However, as Balchunas noted, Bitcoin price still saw a sharp decline during the second part of the previous week despite strong ETF inflows.
