Analysts name reasons for bitcoin’s 10% growth per day

The value of the flagship cryptocurrency bitcoin (BTC) rose by almost 10% on Wednesday, March 20. This growth is noteworthy because it contradicts another trend — it occurred amid a large outflow of funds from spot bitcoin ETFs.

This week, spot bitcoin ETFs saw outflows of a record $ 742 million. About a third of these funds ($ 261.5 million) were withdrawn by users in just one day — March 20. It was on this day that BTC $60,982.37 Bitcoin -2.55% Market capitalization $1.2 trillion VOL. 24 hours $1.36 billion went up significantly in price.

According to Farside Investors, the last few days have seen the largest outflow of funds from spot bitcoin ETFs. The negative trend has continued for the third day in a row.

First of all, we are talking about two funds — Grayscale Bitcoin Trust (GBTC) and Invesco Galaxy Bitcoin ETF (BTCO). They suffered the largest losses: $ 386.6 million and $ 10.2 million, respectively.

The outflow of funds from GBTC began in January, which was also one of the reasons for bitcoin’s decline at the beginning of the year. At the end of the month, it seemed that the situation was leveling off, as the outflow first decreased and then slowed down in early February. However, since the end of February, sales have begun to update their highs again.

On Wednesday, bitcoin momentarily dropped to $ 60,775 and then rose to $ 68,100. At the time of writing, the price of BTC has corrected to $ 66,229.

The recovery may have been facilitated by the Federal Reserve’s decision on the key interest rate. For the fifth time, the regulator kept the base rate in the range of 5.25−5.5%. In addition, Fed Chairman Jerome Powell hinted at the possibility of a cut this year.