Bitcoin Faces One Major Hindrance To Reaching New $75,000 All-Time High

Scott Matherson

1 year ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin is still struggling to reclaim its all-time high even after staging an impressive recovery in the last day. The bounce up from $60,000 to $68,000 has no doubt reignited confidence in the market, but the cryptocurrency continues to face some challenges in its bid for a new all-time high.

Outflows Continue To Rock Bitcoin ETFs

Over the last few months, Spot Bitcoin ETFs have done very well when it comes to inflows, hitting record after record. This saw issues such as BlackRock garner a large number of coins in a short time, which contributed to the Bitcoin run to new all-time highs.

However, as the market gets used to the Spot Bitcoin ETFs being a part of daily investing, outflows have begun to rise. Mainly, these outflows have been from the Grayscale Spot Bitcoin ETF as investors flee from the fund due to their high fees. The same was the case back in January which triggered a crash in the market.

In the last few days, outflows have been dominating the ETF net flows. Data from Coinglass shows that net flows first turned negative at the start of the week on March 18, with $154.3 million flowing out of the funds. The next day, March 19, another $326.2 million left the funds, leading to higher negative flows than the previous day. Then, on March 20, net flows were negative once more, with $261.5 million leaving the funds.

This trend marks the first time since January that Spot Bitcoin ETFs have seen three consecutive days of outflows, which is in stark contrast to the previous week, which saw daily inflows hit a new all-time high of $1.04 billion on March 12.

BTC Price Buckles Under Sell Pressure

The sell pressure Bitcoin is shouldering right now is similar to the one seen in January right after the United States Securities and Exchange Commission (SEC) had given the green light to Spot Bitcoin ETFs for trading. The BTC price also suffered crashes during this time, dropping as low as $38,000.

However, the Bitcoin price had begun to pick up right after the Grayscale outflows slowed down, giving demand enough time to catch up with supply. Just like before, the outflows are being led by Grayscale and until the outflows slow down, BTC could continue to decline.

A turn in the tide from here, nevertheless, would give Bitcoin a lot of runway. A similar surge, as recorded after the outflows ended in January, would easily put the price past $75,000, which would be a new all-time high for cryptocurrency.

For now, BTC is trading at a $67,320, with a 5.51% increase in the last 24 hours.

BTC price crosses $67,000 | Source: BTCUSD on Tradingview.com

Featured image from Inside Bitcoins, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.