Bitcoin Price Stability Forecasted as Spot ETF Outflows Persist

Bitcoin Price Stability Forecasted as Spot ETF Outflows Persist

Following the halving, Bitcoin’s price trajectory has been marked by volatility or stagnation, prompting speculation that the cooling trend could continue as spot ETF outflows persist.

Recent data from U.S. spot Bitcoin (BTC) ETFs on April 30 revealed significant single-day net outflows, with GBTC leading the pack with over $93 million. This contributed to a cumulative outflow surpassing $162 million across four tradable funds.

While Grayscale’s Bitcoin ETF outflows have slowed down recently, historical GBTC exits have remained substantial, totaling over $17.3 billion since its conversion in January. Grayscale CEO Michael Sonnenshein has previously indicated that outflows are expected to decrease over time, alongside a reduction in GBTC’s industry-high fee.

Despite some funds recording zero net inflows, experts have noted that this trend is common in the vast landscape of over 2,000 ETFs trading in America. Notably, one product offered jointly by ARK 21Shares saw over $3 million in net inflows, diverging from the day’s typical status quo.

The total net asset value of assets under management (AUM) in spot Bitcoin ETFs has dipped below $50 billion, with data suggesting that this decline is attributed to both Grayscale outflows and Bitcoin price movements.

BTC traded below $57,000, reflecting a 6% plunge in 24 hours, according to CoinMarketCap. Matthijs de Vries, CEO of Nuklai, suggested that the market might experience a period of sideways movement following the Bitcoin halving.

De Vries highlighted several on-chain indicators pointing to flat prices and market retracement, such as the decline in open interest on Bitcoin futures and reduced trading activity in both Bitcoin and altcoin pools. However, he noted increased volume in USDT pools, indicating traders are seeking safety and cashing out profits.

Despite short-term uncertainties, the consensus remains optimistic about the long-term impact of U.S. spot ETFs and the halving. Bitwise CIO Matt Hougan previously emphasized that the reduction of annual BTC supply due to technological adjustments around block rewards and token emissions should bolster market prices within a year.

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