- Most ETFs’ net flows exceeded Grayscale’s BTC outflows.
- Technical and on-chain indicators suggest that Bitcoin will rise in the coming months.
First time since Bitcoin [BTC] The ETFs went live, and the net balances of BlackRock (IBIT), Fidelity (FBTC), Bitwise (BITB), and Franklin Templeton (EZBC) exceeded Grayscale’s cash outs. AMBCrypto collected the data after investigating the inflows and outflows of ETFs.
For the most part, the Grayscale Bitcoin Trust ETF (GBTC) has dominated the volume. However, not all of these volumes came in.
Over the past few weeks, Grayscale has been offloading a large amount of GBTC. These declines took a toll on Bitcoin’s price, which at one point plummeted to $39,000 during the same period.
Currently IBIT and FBTC are in charge
However, the momentum of the fire sale has now slowed down, and other ETFs are emerging. According to AMBCrypto’s question on Santiment, GBTC flows were -$189.43 million at the time of writing. This was the lowest flow since January 12th.
In terms of value, Grayscale could only boast $199.24 million. This means that his IBIT at BlackRock was doing more in Bitcoin trading.
We also evaluated the amount of FBTC and BITB. At the time of writing, Fidelity has more Bitcoin trading volume than Grayscale, with FBTC of $893.16 million, according to on-chain data. However, Bitwise’s BITB was lower at $64.59 million.
Moreover, the recent drop in GBTC could signal an upturn for Bitcoin. If the company continues to control outflows, we could see an increase in BTC price. A few weeks ago, BTC soared to $49,000 following SEC ETF approval.
However, this event later turned disastrous due to the drop in coin prices. However, the past 24 hours have brought some kind of respite to Bitcoin.
At the time of writing, BTC price is $43.073, equivalent to 2.08%. Therefore, prices may be higher than before.
Will this change benefit Bitcoin?
If Grayscale eventually stops selling, Bitcoin could return to $49,000. But this prediction will require more than just reduced outflows and increased ETF buy orders. Another possible catalyst that could push up the price of Bitcoin could be competition between these companies.
Typically, each of these companies would be expected to desire a higher trading volume than the other.
Therefore, demand for Bitcoin is likely to increase as the battle for market share intensifies. But at the same time, it is also important to check the potential of BTC from a technical point of view.
At the time of writing, Bitcoin had not become extremely volatile, as indicated by the Bollinger Bands (BB). This means that the coin may continue to trade within a small margin. In a very bearish scenario, BTC could fall as low as $41,726. However, if momentum is strong, the coin could reach $44,000.
The Aroon indicator also showed that the dominance of sellers (Aroon Down Blue) is fading while buyers (Aroon Up Orange) are gradually maintaining their dominance. If this trend continues, BTC’s upward trend is likely to continue for the long term.
But in the short term, the potential for a rise to $49,000 may not be immediate. This was due to the signs shown by Chaikin Money Flow (CMF). At the time of writing, CMF was -0.02.
Negative CMF readings indicate a higher distribution than accumulation. If the CMF eventually turns positive, Bitcoin could cause a significant rally.
Major companies are buying “blood”
Another metric that AMBCrypto checked when evaluating Bitcoin’s price potential was the cumulative trend score. The accumulation trend score reflects the relative size of entities that are actively accumulating coins on-chain in terms of their BTC holdings.
An accumulation propensity score close to 1 indicates that larger entities are accumulating overall. However, a cumulative propensity score close to zero indicates that the entity is dispersed.
How much is 1,10,100 BTC worth today?
As of this writing, Glassnode data shows an Accumulation Trend Score of exactly 1. This value means that many major companies are actively buying Bitcoin on the spur of the moment.
If the accumulation continues to increase, the price of BTC could rise significantly in the coming months.