Bitcoin: Analyst predicts more ‘upside’ for BTC despite THIS ‘net neutral’

• Grayscale’s GBTC whole cumulative outflows hit $14.15 million
• Coinbase analyst sees GBTC promoting linked to Gemini as “web impartial”

The brand new U.S spot Bitcoin [BTC] ETFs recorded web outflows all through final week. Grayscale’s GBTC led the outflows, totaling $2.1 billion. 

As Q1 2024 inches to an finish, there was a renewed bullish curiosity over the past 48 hours. Actually, the spot ETFs netted $15.4 million on 25 March. Even so, sadly, GBTC outflows endured into the brand new week, hitting $350.1 million. 

For sure, these outflows fueled many considerations throughout the group. Coinbase analyst David Duong was fast to touch upon whether or not GBTC’s outflows have an effect on Bitcoin’s value motion or not. 

BTC outflows from GBTC persists

In a latest interview, Duong cited the potential for the bankrupt Gemini repaying its prospects utilizing BTC from its GBTC stake. 

“Majority holdings that Gemini holds are going to be paid out in Bitcoin. And if they’re, which means they’re promoting GBTC and shopping for Bitcoin.” 

The belief is that the continuing GBTC outflows are linked to Gemini liquidations. Because of this, Duong sees the present GBTC outflows as counter-intuitive; 

“So which means the efficiency itself ought to be web impartial.” 

Up to now, constant GBTC outflows have slashed Grayscale’s holding from 624.28K BTC to 357.05K BTC, as per Arkham Intelligence data. That interprets to a 42.8% drop for the reason that fund transformed to an ETF in January. 

Bloomberg’s Senior ETF analyst Erick Balchunas additionally provided varied theories for GBTC outflows. In one among them, he said, 

“They most likely underestimated simply how brutally aggressive the U.S ETF market is.”

On the time of writing, Bitcoin was heading in the right direction for a breakout from final week’s vary and was buying and selling above $70K. Referring to the prevailing value motion, Duong added, 

“We’re actually in a brand new value discovery territory when it comes to not realizing what the conduct goes to be.” 

He went on to say,

“I feel that we’re going to see continued upside.” 

That being stated, Duong’s “web impartial” thesis of GBTC promoting can solely be confirmed if Gemini prospects get reimbursement in BTC. Within the meantime, GBTC outflows might prolong because the halving beckons.