GBTC outflows may have triggered a crypto market correction, but aggressive buying within the remaining nine spot Bitcoin ETFs could help to limit the duration of the downside move.
Bitcoin (BTC) is witnessing a tough battle between the bulls and the bears near the $40,000 level. Buyers seem to be positive about the long-term prospects of the newly launched Bitcoin exchange-traded funds (ETFs), but the sellers are focusing on the $3.4 billion in outflows from the Grayscale Bitcoin Trust.
Apart from the crypto-specific issues, some analysts are worried about the worsening macroeconomic situation. Arthur Hayes, the former CEO of BitMEX, cautioned investors in his latest blog post that Bitcoin risks a fall between $35,000 and $30,000. According to Hayes, the United States Federal Reserve could find it difficult to cut rates in the near future as rising shipping costs due to the Houthi attacks on ships in the Red Sea could boost inflation.
Several analysts have turned bearish in the short term, but solid demand from the newly launched Bitcoin ETFs may limit the downside. Within seven days of their launch, the nine spot Bitcoin ETFs have amassed more than 100,000 Bitcoin.
