On January 23, GBTC reported an additional $515 million in outflows, bringing the total outflows to $3.4 billion since its conversion into a spot ETF earlier this month. In contrast, nine other recently approved spot Bitcoin ETFs collectively recorded inflows of $249 million.
Since the approval of spot ETFs by the US SEC, Bitcoin has experienced a complete reversal of its gains, with its price dipping below the $40,000 mark. This significant drop in value resulted in the cryptocurrency shedding nearly $200 billion from its market capitalization within the span of this week. As of the current moment, Bitcoin is trading at a price of $39,700.
GBTC Outflows Maybe Slowing Down
The notable increase in outflows from GBTC has been linked to the actions of the now-defunct FTX crypto exchange, which reportedly sold off approximately two-thirds of its 22.3 million GBTC shares within a three-day trading period.
FTX is reported to still hold approximately 8 million shares, equivalent to a value of approximately $281 million, that have yet to be liquidated.
However, Bloomberg ETF analyst Eric Balchunas has pointed out that the most recent data indicates a potential slowdown in the outflows from GBTC.
According to data available on Grayscale’s website, there are currently 600.5 million outstanding GBTC shares, which represent the trust’s holdings of 536,694.9 Bitcoin. Since January 10th, a total of 82,525 Bitcoin has exited the GBTC platform, as reported by CC15Capital data.
Analyst Suggests Further Price Correction
A Bitfinex analyst has shared insights indicating that with Bitcoin (BTC) falling and remaining below the $43,000 threshold, more than half of the profits amassed by short-term BTC holders have been eroded.
In light of these market dynamics, the analyst has suggested that a substantial price correction, possibly even lower than the current levels, should not come as a surprise. They noted that with bearish sentiment prevailing, the next critical price levels for BTC that could offer support are estimated to be in the range of $38,000 (in proximity to the short-term holder realized price of $38,307) and $36,000.
