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After the Current Ups & Downs in BTC Price, Bitcoin ETFs Saw Huge Outflows. The Analysts at J.P Morgan Believe That Bitcoin is OverValued.
Despite Bitcoin’s price facing pressure and currently trading at $64,051 with a market cap of $1.259 trillion, analyst Michael van de Poppe sees BlackRock’s consistent inflows into Spot Bitcoin ETFs as a positive sign of ongoing institutional buying activity, which suggests that the market cycle is far from over.
OutFlows in Bitcoin ETFs
Bitcoin ETFs saw a total outflow of over $888 million this week, with Spot Bitcoin ETFs experiencing a net outflow of $51.6 million on Friday, March 22. GBTC alone recorded a single-day outflow of $169 million. However, BlackRock’s ETF (IBIT) observed minimal net inflows, helping mitigate some negative impacts.
The persistent outflows from GBTC continue to impact the Bitcoin ETF market, with Thursday, March 21, seeing another substantial outflow of $359 million, summing up to $1.8 billion for the week. Additionally, Bitcoin ETF outflows accelerated, reaching $95 million on the same day.
GBTC’s Single-Day Outflow
GBTC faced a significant single-day outflow of $386 million on Wednesday, March 20, while IBIT saw a considerable inflow of $49.28 million, bringing its total historical net inflow to $13.09 billion. However, concerns over central bank actions have led to a drying up of ETF inflows this week.
On Tuesday, March 19, Bitcoin ETFs saw outflows for multiple days, amounting to $326 million. It has caused a shift in the market sentiment. Institutional investors appeared to be cautious with the Federal Open Market Committee (FOMC) decision scheduled for March 20.
As a result, there have been subdued inflows across most ETFs.GBTC’s losses were increased by a massive $444 million outflow on Tuesday, while BlackRock’s Bitcoin ETF regained momentum on Monday, March 18, with $451.5 million inflows, contrasting with minimal inflows for other ETFs.
JP Morgan Analysts Share Their Views on Bitcoin
JP Morgan has warned that the recent slowdowns in spot bitcoin exchange-traded fund (ETF) inflows cast doubt on the market’s optimistic prediction of year-end price hikes.
Expectations were optimistic for steady demand driven by bitcoin ETFs and the approaching Bitcoin halving event. However, these latest statistics indicate that the influx of funds into spot ETFs may not be as consistent as previously anticipated.
10 spot bitcoin ETFs that began trading in early January saw money flow out last week as Grayscale’s bitcoin trust (GBTC) continued to see significant outflows.
A Drop Coming in BTC Price- JP Morgan Analysts
JPMorgan analysts have predicted a drop in Bitcoin’s price to $42,000 after the April halving. JPMorgan believes that the halving and Ethereum upgrade will not significantly impact the market as it has already factored them in. The bank’s CEO, Jamie Dimon, remains skeptical of cryptocurrencies and has no plans to invest in Bitcoin.
In an interview with CNBC, Jamie Dimon expressed his belief that cryptocurrency is a minor aspect of finance and requires too much attention. He compared crypto tokens to pet rocks and criticized the excessive hype around them. However, as always, Jamie has acknowledged the legitimacy of blockchain technology and Web 3.0.
He questioned why such illegal activities are allowed to take place and why banks are blamed while crypto remains unchecked. He also discussed the possibility of a wage-price spiral, which could be a concern.
Summary
Bitcoin ETFs saw a net outflow of over $888m this week. JP Morgan has warned that the recent slowdowns in spot Bitcoin ETF inflows cast doubt on the market’s optimistic prediction of year-end price hikes. Jamie Dimon expressed his belief that cryptocurrency is a minor aspect of finance and requires too much attention.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
