- As widely reported, the outflows from Grayscale Bitcoin
Trust (GBTC) were a major cause of the decline, which was converted into a spot ETF.
- GBTC shareholders started to profit after gaining access to their previously restricted assets when converted to an ETF.
- Bitcoin rising above $42,000 on the same day provided initial signs that selling pressure might start to decrease.
|Before you reading,
Don't miss coins like PEPE again! Click here to find new PEPEs!
Although the outflow of money in Grayscale’s spot Bitcoin ETF has reached huge proportions, it is decreasing: What will happen next?
Outflows from Grayscale’s Bitcoin ETF are Decreasing
Since the approval of spot ETFs, Bitcoin’s disappointing performance, which many market participants expected to lead to an immediate price increase, has been a letdown. According to the latest data, Bitcoin traded at $42,270, down 13% from the ETF approval day.
|Did you missed the PEPE? No worries, click here to 100x potential memes!
As widely reported, outflows from Grayscale Bitcoin Trust (GBTC) were a major cause of the decline, which was converted into a spot ETF. According to data from SoSo Value analyzed by CoinOtag, $5 billion worth of Bitcoin has left the fund since the conversion.
GBTC shareholders started to profit after gaining access to their previously restricted assets when converted to an ETF. Despite Grayscale still holding over 500,000 Bitcoins at the time of writing, concerns about long-term bearish conditions persisted.
|You are looking to New 1000x Potential Gems: We recommended to Click Here to Buy Safely!
However, in the past few days, the outflow rate has slowed significantly. As analyzed by CoinOtag, daily outflows steadily decreased from a level of $640 million at the beginning of last week to $255 million by the end of the weekend.
James Butterfill, the Head of Research at Coinshares, also touched upon this gradual decrease in a post on the X platform. Additionally, all recently launched Bitcoin spot ETFs recorded net inflows on January 26 after consecutive four days of net outflows.
Selling pressure on Bitcoin is starting to decrease
Bitcoin rising above $42,000 on the same day provided initial signs that selling pressure might start to decrease. Meanwhile, influential whale investors, ignoring short-term fluctuations, continued to accumulate large amounts of Bitcoin.
According to CoinOtag’s analysis of Glassnode data, the number of entities holding at least 1,000 coins reached its highest level since May 2022. The trend has been bullish since the approval of spot ETFs.