BTC price nears $67K as new GBTC Bitcoin outflows pass $550M

Bitcoin price pushes above $66K

Bitcoin's price surged above $66,000 at the March 4 Wall Street open, continuing its upward trajectory despite increasing outflows from the Grayscale Bitcoin Trust (GBTC). At the time of writing, BTC/USD was up 5% for the day, with market observers predicting a potential move towards new all-time highs.

While the market has been making swift gains, some analysts have raised concerns about a possible correction. Venturefounder, a contributor to on-chain analytics firm CryptoQuant, highlighted similarities between the current situation and the events of the previous week, when snap gains led to increased volatility after Coinbase crashed. Keith Alan, co-founder of trading resource Material Indicators, also noted the formation of a classic Cup & Handle pattern on the macro chart, suggesting the possibility of a pullback.

Despite these cautionary notes, Bitcoin's price has been resilient, ignoring surging outflows from GBTC. Outflows from the Grayscale Bitcoin Trust have been increasing in March, surpassing $550 million on March 4th. However, GBTC remains the largest Bitcoin investment vehicle, holding 428,540 BTC worth $28.9 billion as of March 4th.

Market observers divided on BTC's future

As Bitcoin approaches all-time highs, market observers have different perspectives on what may happen next. Some predict a potential buying squeeze with the ETF driving the price to $69,000, a Coinbase circuit breaker, and a flash dump. Others are more cautious, suggesting the formation of a Cup & Handle pattern that could lead to a pullback. However, it's also possible that the market may continue to climb beyond $69,000.

The unpredictability of the market adds to the complexity of trading decisions. The potential rejection point for Bitcoin is currently in the range of $74,000 to $75,000. However, timing is key, and if it takes longer to reach that point, the rejection line may move higher. Traders need to be cautious and consider their own risk tolerance and research before making any investment decisions.

BTC price ignores surging GBTC outflows

One interesting aspect of Bitcoin's recent price surge is its ability to ignore the increasing outflows from GBTC. While the outflows from the Grayscale Bitcoin Trust have been re-accelerating above $60,000, Bitcoin's price continues to rise. On March 4th, the net outflows from GBTC reached -$139.6 million, primarily due to a significant outflow of -$492.4 million from GBTC.

Despite these outflows, GBTC remains the largest Bitcoin investment vehicle, holding a total of 428,540 BTC worth $28.9 billion as of March 4th. The decreasing daily BTC holdings since mid-January have not hindered Bitcoin's upward momentum.