bitcoin is still struggling to regain its all-time high even after making an impressive rally in the past day. The bounce from $60,000 to $68,000 has certainly rekindled confidence in the market, but the cryptocurrency continues to face some challenges as it attempts to reach a new all-time high.
Capital Outflows Continue to Shake bitcoin ETFs
In recent months, bitcoin Spot ETFs have done very well when it comes to capital inflows, hitting record after record. This caused issues like BlackRock to obtain a large number of coins in a short time, which contributed to bitcoin reaching new all-time highs.
However, as the market becomes accustomed to spot bitcoin ETFs being part of everyday investing, capital outflows have begun to increase. Primarily, these outflows have been from the Grayscale Spot bitcoin ETF, as investors flee the fund due to its high fees. The same thing happened in January, causing the market to crash.
In recent days, capital outflows have dominated the ETF's net flows. Data from Coinglass shows that net flows turned negative for the first time at the start of the week of March 18, with $154.3 million leaving the funds. The next day, March 19, another $326.2 million left the funds, resulting in larger negative flows than the previous day. Then, on March 20, net flows turned negative again, with $261.5 million leaving the funds.
This trend marks the first time since January that bitcoin Spot ETFs have seen three consecutive days of outflows, contrasting with the previous week, which saw daily inflows hit a new all-time high of $1.04 billion on March 12. .
btc price sinks under selling pressure
The selling pressure that bitcoin is enduring right now is similar to what was seen in January, just after the US Securities and Exchange Commission (SEC) gave the green light to spot bitcoin ETF trading. . The price of btc also suffered declines during this time, falling as low as $38,000.
However, bitcoin price had started to recover just after Grayscale outflows slowed, giving demand enough time to catch up with supply. As before, outflows are being led by Grayscale and until outflows slow down, btc could continue to decline.
However, a change in the tide from here would give bitcoin plenty of runway. A similar surge, recorded after outflows ended in January, would easily push the price above $75,000, which would be a new all-time high for the cryptocurrency.
For now, btc is trading at $67,320, up 5.51% in the last 24 hours.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Faces-Major-Hurdle-to-Hit-New-All-Time-High-of" alt="Tradingview.com bitcoin Price Chart” width=”3286″ height=”1530″ loading=”lazy”/>
btc price crosses $67,000 | Source: BTCUSD on Tradingview.com
Featured image from Inside Bitcoins, chart from Tradingview.com
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