Bitcoin ETF Flows Turn Negative as Second Quarter Begins, Is the Halving Excitement Over?
On Monday, April 1, total flows to all nine spot Bitcoin ETFs turned negative once again! It turns out that outflows from the Grayscale Bitcoin ETF GBTC have increased again. On Monday, total outflow from GBTc once again exceeded $300 million.
Bitcoin ETFs See Net Outflow
On April 1, Bitcoin spot ETFs collectively experienced a net outflow of $85.84 million. Among the notable moves, Grayscale ETF GBTC recorded a net outflow of $302 million in a single day.
In contrast, BlackRock ETF IBIT saw net inflows of $165 million, while Fidelity ETF FBTC saw net inflows of $43.99 million. Cumulative net inflows into Bitcoin spot ETFs reached an impressive $12.04 billion, according to data from Farside Investors, indicating continued investor interest in this asset class.
Amid these negative flows, Bitcoin price entered a sharp correction, falling 5.5% to $66,000. Along with Bitcoin, even the broader cryptocurrency market has witnessed strong liquidations in the last 24 hours.
Interestingly, the sharp correction occurred just before the Bitcoin halving event, which will take place in just 19 days. This correction could strengthen analysts’ expectations that the BTC price will reach $75,000 with the halving event.
Fed’s Monetary Policy Faces Challenges
As April begins, the crypto market pullback suggests that momentum is waning, particularly in the recent strong rally characterized by Bitcoin rising to a new all-time high. This shift in sentiment reflects the more cautious stance prevailing in global markets, driven by ongoing inflationary pressures in the United States. As a result, investors are lowering their expectations for looser monetary policies and interest rate cuts from the Fed.
Stefan von Haenisch, head of trading at OSL SG Pte in Singapore, noted that the Fed’s expectation of tapering interest rates is reflected in the cryptocurrency space. This sentiment is evidenced by a broad selling wave affecting various sectors in the crypto market as the week progresses. Especially sectors that have outperformed Bitcoin in the last six months, such as meme coins, are highly affected by this cautious mood.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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