Grayscale’s outflows hit a single-day high of $642 million, the highest since its conversion to ETF in January.
Bitcoin (BTC)Â struggled to hold on to $65,000 as the spot exchange-traded fund (ETF) market recorded its first net outflow in 11 trading days.
Data from SoSoValue showed that Grayscale’s GBTC recorded a single-day outflow of $642 million on March 18, the highest since the US ETF product went live on January 11.
Outflows as Bitcoin Struggles
Inflows from BlackRock’s IBIT couldn’t keep the net flow green on Monday as Bitcoin continued its pre-halving correction. IBIT saw a net inflow of $451 million, while other ETFs produced a net inflow of nearly $36.7 million.
However, Grayscale’s single-day record outflow of $642 million canceled the inflows, leading to a net outflow of $154 million. Notably, this was the first day of net outflow from the spot Bitcoin ETF products since March 1.
Incessant daily outflows from Grayscale seem to have picked up after subsiding for some time. It is worth stating that GBTC has never seen a single day of net inflow since its conversion to an ETF in mid-January.
Profit-Taking or Just Pre-Halving Correction?
Analysis has shown that short-term holders taking profit might have caused the recent Bitcoin correction. When Bitcoin reached a new all-time high of $73,800, over 95% of wallets holding the asset were in profit.
Hence, analysts alleged that investors might have decided to take profit, bearing in mind that Bitcoin has not seen a significant retracement since breaking its previous high of $69,000. Data showed that the market was heated after Bitcoin reached a new high, with the Fear and Greed Index crossing 92.
Research also shows that Bitcoin may have entered its “danger zone,” which is usually characterized by a drawdown. This usually happens between 14 and 28 days before the halving.
Bitcoin has retraced over 10% from the past week and is trading above $64,000. The asset’s market cap sits at $1.26 trillion.
