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Bitcoin Price Makes Strong Recovery
After a tumultuous period for Bitcoin that saw the cryptocurrency’s value drop below $62,000, BTC has quickly rebounded. Bitcoin surged to as high as $68,120.08 early Thursday morning. As the day progressed, the price settled at $66,828.32, reflecting a 6% increase over the past 24 hours, according to data from CoinGecko. While still below its price from a week ago, Bitcoin had reached a new all-time high just a week prior, surpassing the $73,000 mark.
Market Turbulence Explained
The recent dip in crypto prices was attributed, in part, to unusual trading activity on BitMex, a major crypto exchange. Large sell orders led Bitcoin’s price to plummet to as low as $8,900 on BitMex’s spot exchange. Despite this sharp decline, BitMex clarified that the incident did not impact their derivatives markets, citing the independence and robustness of their indices.
Investigations and Market Response
BitMex’s compliance team is currently investigating the accounts and transactions responsible for the brief flash crash. However, the market has yet to witness a significant improvement in spot Bitcoin ETF flows. In fact, withdrawals from Bitcoin funds have exceeded deposits for three consecutive days. Investors withdrew a total of $261 million in Bitcoin ETF shares yesterday alone, contributing to a weekly net redemption amount of $742 million, as reported by CoinGlass.
Notably, withdrawals from the Grayscale Bitcoin Trust (GBTC) have been particularly pronounced, with investors redeeming $387 million worth of GBTC shares yesterday. This week, total outflows from GBTC have amounted to $1.5 billion. On the other hand, BlackRock’s iShares Bitcoin Trust (IBIT) has continued to attract deposits, holding 238 thousand BTC compared to GBTC’s 361.6 BTC.
Changing Market Dynamics
If current withdrawal and deposit trends persist, BlackRock’s IBIT could surpass GBTC to become the top spot Bitcoin ETF provider in the near future. The competition between these funds reflects the dynamic nature of the cryptocurrency market, with changes in market leadership expected in early April.
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