Bitcoin’s Record Month Thwarted by Second-Largest GBTC Outflow

On February 29, outflows from the Grayscale Bitcoin Trust ETF (GBTC) reached $598.9 million, marking the second-largest in history. This development interrupted Bitcoin’s five-day growth streak, closing the month with a near-record increase of 43.6%.

$600m outflow for $GBTC today. That’s a lot. Two steps forward one step back. https://t.co/eWaEPMzUIW

— Eric Balchunas (@EricBalchunas) February 29, 2024

“That’s a lot [outflow from GBTC]. Two steps forward, one step back,” commented Bloomberg analyst Eric Balchunas.

The flow dynamics in the product may have contributed to the 2.1% decline in the digital gold’s value by the end of the day. 

On February 28, the price tested the $64,000 mark. One of the drivers was a record high net inflow into the Bitcoin ETF ($673.4 million).

The monthly dynamics were the strongest since December 2020, when the leading cryptocurrency rose by 46.9% to $28,900.

In absolute terms, the value of digital gold in February 2024 increased by a record $18,550. For comparison, in October 2021, this figure was $17,475.

Earlier, analysts at QCP Capital predicted Bitcoin’s rise to $80,000 amid explosive ETF demand and signals from the derivatives market.

Matrixport co-founder Daniel Yan warned of the market’s vulnerability to a “healthy” 15% correction following the Dencun update on the Ethereum network before the halving.

JPMorgan predicted a Bitcoin pullback to $42,000 after this event.