Bitcoin Outflow Increases: 2 Experts Weigh In On Recent Changes, Is The Data ‘Insignificant?’

Bitcoin BTC/USD funds are experiencing an outflow of coins as investors anticipate an early pivot in favor of liquidity easing from the Federal Reserve (Fed) due to the recent U.S. bank failures, according to ByteTree Asset Management’s data.
The number of coins held by spot and futures-focused ETFs in Europe, Canada and the U.S. has decreased this month by 16,560 Bitcoin, equivalent to $409 million, Coindesk reported, quoting the data.
This decline in the balance of funds implies a lack of institutional participation in Bitcoin’s recent rally, despite it being driven by safe-haven demand and hopes of Fed rate cuts.

Also Read: $2.2 Billion Gone? FTX Founder Bankman-Fried And Colleagues Receive Massive Sum
Nonetheless, some observers believe Bitcoin’s strengthening appeal as a hedge against the banking system is a driving factor behind the surge.
ByteTree Asset Management CIO Charlie Morris warns against drawing conclusions from the data, saying a single large outflow from a fund is mainly responsible for the decrease in balance. Meanwhile, Matrixport Head of Research and Strategy Markus Thielen believes the decline in the balance held in funds does not necessarily mean the price rally lacks strength and is unsustainable.

Thielen also notes the fund holdings data is insignificant, given that it accounts for a small percentage of the total market and other sources of demand are lifting prices higher.
Read Next: Crypto Investors Panic And Pull $3B From This Stablecoin In 3 Days
Photo: Shutterstock

This article has been originally published at: https://www.benzinga.com/markets/cryptocurrency/23/03/31385441/bitcoin-outflow-increases-2-experts-weigh-in-on-recent-changes-is-the-data-insignificant?SNAPI