Home Business News Bitcoin consolidates above $52,000 despite GBTC outflows rising to two-week high

Bitcoin consolidates above $52,000 despite GBTC outflows rising to two-week high

19th Feb 24 11:28 am

Bitcoin is trying to consolidate above the 52,000 level at the beginning of the new week, after recording the highest weekly close since November of 2021, which represents the fourth consecutive week of gains.

Bitcoin’s gains came with positive net inflows of more than $2.2 billion during the past week, while outflows from GBTC continue to decline slightly to reach $624 million in the same period.

While the iShares Bitcoin Trust (IBIT) accounted for the largest share of these net flows, with $1.6 billion in positive net flows, it has recorded net flows of $5.2 billion since its launch, according to Bloomberg analysts.

In contrast, net outflows from the Grayscale Bitcoin Trust (GBTC) have reached more than 7 billion since the launch of the new ETFs. While it recorded outflows of about $173 million on Friday alone, which represents the highest level since the beginning of this February.

In conjunction with the improved performance of the new spot ETFs, Bitcoin was able to rush to the level of $52,000 for the first time since 2021, which may have led to the launch of waves of liquidations of long positions, to take profits, of about $285 million over the last four days, according to data provided by CoinGlass.

While Bitcoin accounted for a relatively small share of those long liquidations at 63 million, unlike the times when it accounts for most of the liquidations.

Investors appear more confident that they can see further gains for cryptocurrencies, led by Bitcoin, with steadily increasing inflows into spot ETFs and relatively calm outflows from GBTC. While the approaching halving event with the usual bullish impact may make investors more committed to their long positions.

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