Bitcoin (BTC) News Today: ETF Momentum Falters Amidst GBTC Outflows

Bob Mason
Published: Mar 1, 2024, 03:49 GMT+00:00

Key Points:

  • BTC fell by 2.54% on Thursday, ending the session at $60,808.
  • Grayscale Bitcoin Trust (GBTC) outflows surge to $599 million on Thursday, testing buyer demand for BTC.
  • BTC-spot ETF-related news will remain the focal point on Friday.
Bitcoin (BTC) News Today

In this article:

BTC Ended Five-Day Winning Streak on Profit-Taking

On Thursday, BTC declined by 2.54%. Partially reversing a 9.38% surge from Wednesday, BTC ended the session at $60,808. Despite the pullback, BTC avoided sub-$60,000 for the first time since November 2021.

BTC-spot ETF market net inflows for February 28 (Wednesday) rose to a record high of $673.4 million.

iShares Bitcoin Trust (IBIT) saw net inflows increase from $520.2 million on February 27 to $612.1 million on February 28. Significantly, IBIT held onto the number one spot, with Fidelity Wise Origin Bitcoin Fund (FBTC) seeing net inflows of $245.2 million, up from $126.0 million on February 27.

The record high net inflows came despite Grayscale Bitcoin Trust (GBTC) seeing net outflows of $216.4 million on February 28.

Monday through Wednesday, the BTC-spot ETF market saw total net inflows of $1,770.1 million. In the week ending February 16, total net inflows reached a weekly high of $2,271 million. Despite a spike in GBTC net outflows, upward net inflow trends paint a positive outlook for BTC.

Bloomberg Intelligence ETF Analyst James Seyffart reacted to the flows, saying,

“UPDATE: We have a new record inflow for the Cointucky Derby #Bitcoin ETFs! IBIT took in a record $612 million on its own. On a net basis, the group took in $673 million. This beats the day 1 record of $655 million. (still waiting on BTCO).”

BTC-spot ETF Market net inflows hit record on 28 February.
BitMEX Flows for 28/02/24

However, BTC-spot ETF market flow data for February 29 painted a gloomier picture for the Friday session.

Grayscale Bitcoin Trust Sees Spike in Net Outflows

According to Farside Investors, GBTC saw net outflows of $599.0 million on February 29. Outflows were the second largest since the January 11 launch of the Nine. Based on the available BTC-spot ETF market flow data for February 29, IBIT would need to see another $500 plus in net inflows for the BTC-spot ETF market to avoid net outflows for the first time since February 21.

GBTC sees surge in net outflows.
Farside 290224 BTC-Spot ETF Market Flows

Banks Enter the Bitcoin-Spot ETF Market Fray

On Thursday, news hit the wires of two US banks offering BTC-spot ETFs to wealth management clients.

Bloomberg reported Bank of America’s (BAC) Merrill Lynch and Wells Fargo (WFC) started offering BTC-spot ETFs to their clients. However, Vanguard remains on the sidelines. In January, Vanguard published a Q&A, saying crypto is more of a speculation than an investment.

Technical Analysis

Bitcoin Analysis

BTC remained well above the 50-day and 200-day EMAs, sending bullish price signals.

A BTC return to $62,000 would give the bulls a run at the Wednesday high of $64,008. A break above the Wednesday high of $64,008 would bring the all-time high of $69,276 into play.

BTC-spot ETF market flow data needs consideration.

However, a fall through the $59,176 support level would give the bears a run at the $57,000 support level.

The 14-Daily RSI reading, 79.42, shows BTC in overbought territory. Selling pressure may intensify at the Wednesday high of $64,008.

BTC Daily Chart sends bullish price signals.
BTCUSD 010324 Daily Chart

Ethereum Analysis

ETH sat well above the 50-day and 200-day EMAs, sending the bullish price signals.

An ETH break above the $3,412 resistance level and the Thursday high of $3,521 would bring the $3,683 resistance level into play.

ETH-spot ETF-related news needs consideration.

However, an ETH drop below the $3,300 handle would support a fall toward the $3,200 support level.

The 14-period Daily RSI, at 68.22, suggests that ETH could break above the $3,412 resistance level before reentering overbought territory.

ETH Daily Chart sends bullish price signals.
ETHUSD 010324 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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