Despite discussions of fee reductions, GBTC experienced net outflows of $445 million.
Attention is focused on the FOMC meeting as the price of Bitcoin plunges to $61,500.
Market analysts strongly dispute the idea that the Bitcoin bull market has ended.
There has been a shift in the market as Bitcoin ETF experienced outflows for the second day in a row on Tuesday, March 19. Consequently, the price of Bitcoin (BTC) has experienced a significant decline, dropping by an additional 6% and falling below $62,000.
The Bitcoin ETF Outflows
According to data from Farside investors, the total outflows across all nine Bitcoin ETFs on Tuesday reached $326 million, more than twice the amount from the previous day. Similar to the mindset of a quantitative analyst, the market sentiment is undergoing a shift with two consecutive days of outflows.
The net inflows for the BlackRock Bitcoin ETF IBIT were only $75 million, while Fidelity’s FBTC came in second with $39.6 million. While other Bitcoin ETFs saw minimal inflows, as reported by data from Farside. Institutional investors have adopted a cautious approach in anticipation of the FOMC decision on Wednesday, March 20.
Meanwhile, the Grayscale Bitcoin ETF GBTC continues to experience significant net outflows, with a staggering $444 million on Tuesday. Grayscale experienced another loss of 6,860 Bitcoin today, which accounts for about 1.9% of its overall Bitcoin holdings. Curiously, this comes despite Grayscale CEO Michael Sonneshien’s announcement that they would soon be lowering the fees for GBTC. This has had little impact in persuading the investors otherwise.
BTC Price Facing Downward Pressure
With the Federal Open Market Committee (FOMC) meeting just around the corner, the cryptocurrency markets are experiencing increased volatility. Bitcoin (BTC) and Ethereum (ETH) have seen substantial declines, with BTC reaching lows of 61,500 and ETH touching 3,145.
Amidst the downturn, the 60,000 level in BTC is expected to provide psychological support. Nevertheless, market analysts highlight the importance of spotting BTC ETF demand in sustaining stability at this level.
In a recent analysis conducted by CryptoQuant, there are concerns surrounding the current state of the bull market within the cryptocurrency industry. However, there are no significant signs indicating that the bull market has come to an end.
Analyzing historical Bitcoin cycles shows that previous bull markets did not stop at all-time highs (ATH). Given the current momentum surrounding Exchange-Traded Funds (ETFs) and the upcoming Halving event, there is a sense of optimism for a sustained upward trajectory in the market. Historical data shows that in 2020, it took close to two months to exceed the previous all-time high range.
