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Grayscale Bitcoin Trust Outflows
The Grayscale Bitcoin Trust’s (GBTC) exchange-traded fund (ETF) experienced significant outflows recently, with substantial amounts leaving the fund over the past week.
Recent Outflows
- On March 21, nearly $359 million exited the fund.
- March 18 saw the largest single-day outflow of $642 million.
- Total outflows for GBTC this week amount to $1.8 billion.
Analysts’ Speculations
Analysts speculate that the trend of outflows from Grayscale’s fund may be coming to an end. Senior Bloomberg ETF analyst Eric Balchunas suggested that the worst may be over, attributing the outflows to bankruptcies in the crypto industry.
Bitcoin Price Forecast
Despite recent fluctuations in Bitcoin prices, investment firm Bernstein has revised its year-end forecast for the cryptocurrency.
New Price Target
Bernstein now projects Bitcoin to reach $90,000 by the end of the year, up from the previous estimate of $80,000.
Factors Supporting the Forecast
- Start of a new Bitcoin bull cycle
- Strong inflows into ETFs
- Aggressive expansion of miner capacity
- Record-high revenues for miners
Impact of Halving Event
Bernstein also adjusted its forecast for the upcoming halving event in April, expecting a 7% decrease in the hash rate, which is a more positive outlook compared to their previous prediction of a 15% decline.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
