GBTC outflows have experienced a significant slowdown, indicating a growing interest from institutional investors in Bitcoin and the potential for a price rally. Recent trends in call option buying and the upcoming Bitcoin halving event further suggest a bullish market outlook, with a target Bitcoin value of approximately $80,000.
There has been a notable shift in Bitcoin’s market dynamics. After a period of outflows in March, there has been a rebound in spot Bitcoin ETFs, with inflows turning positive. This reversal indicates a departure from the previously observed corrections caused by GBTC sell-offs and highlights renewed institutional interest in Bitcoin. This contradicts earlier predictions and is detailed in the latest CNF report.
On April 3rd, GBTC outflows reached a new one-month low of $75 million, a significant decrease considering that daily outflows had remained below $100 million since late February. Institutional investors such as Blackrock’s IBIT ETF and FBTC have played a significant role in this shift, with the former purchasing $42 million and the latter $117 million worth of Bitcoin. This movement is reflected in the total Bitcoin ETF inflows, which have reached $113 million, indicating a bullish sentiment in the market.
The Coinbase Premium, which measures the price difference of Bitcoin on Coinbase compared to other exchanges, has been on the rise. This suggests strong buying activity from US institutional investors. Additionally, CryptoQuant reports a substantial amount of Bitcoin moving off exchanges into cold storage, potentially leading to supply shocks. While positive Bitcoin futures funding rates indicate a bullish sentiment, historical patterns suggest the possibility of corrective phases that present buying opportunities.
The optimism in the Bitcoin market is further supported by QCP Capital’s observations of an increase in high-strike call options buying. Nearly “$10 million was spent on premiums for $60,000 and $80,000” strike options, indicating a bullish outlook and investors betting on significant price increases. Furthermore, a crypto expert has highlighted Bitcoin’s breakout from a ‘cup & handle’ chart pattern, which typically follows an uptrend and suggests readiness for a new upward move. This pattern points to an approximate target of $80,000 for Bitcoin.
Currently, Bitcoin is trading at $66,186, with a slight increase of 0.28% in the past day but a decrease of 5.60% over the past week. This price fluctuation adds another layer of dynamism to the market, as shown in the attached chart.
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