Bitcoin Plunges: Record $640M Outflow from GBTC Triggers Market Concerns

Bitcoin experiences a significant drop, reaching an intraday low of $39,494.65.
Grayscale Bitcoin Trust (GBTC) sees a record $640 million outflow in one day, totalling $3.45 billion.

In a significant market shakeup, Bitcoin plummets to an intraday low of $39,494.65, reflecting a volatile 24-hour range. The largest contributor to this downturn is the Grayscale Bitcoin Trust (GBTC), witnessing an unprecedented $640 million outflow in a single day, raising concerns and prompting market analysts to examine the root causes.

GBTC, a significant player in the Bitcoin market, experienced a record-breaking outflow of $640 million, marking the largest in its history. The cumulative outflows have now reached a staggering $3.45 billion, signalling a shift in sentiment among investors.

Diminishing Enthusiasm for Bitcoin ETFs

Analysts attribute the broader selloff to diminishing enthusiasm for Bitcoin exchange-traded funds (ETFs). The declining correlation between Bitcoin and tech stocks, currently standing at a low of 0.3 in the past week, underlines this trend. Notably, the ProShares Bitcoin Strategy ETF, tracking Bitcoin futures, has seen a 50% decline since its launch in October 2021, reflecting a broader trend in ETF performance.

Prominent figures in the financial world express bearish sentiments. Peter Schiff, a vocal Bitcoin critic, highlights the decline of the ProShares Bitcoin Strategy ETF as indicative of the fate of other ETFs. Jim Cramer succinctly sums up the situation with a tweet declaring, “Bitcoin=tough own,” emphasizing the challenging nature of Bitcoin ownership in the current market conditions.