In a recent post on the X social media platform, Eric Balchunas, a senior ETF analyst at Bloomberg, opined that Bitcoin ETF flows are not the deciding factor in the price performance of the largest cryptocurrency.
Balchunas added that there are "bigger forces at work" while pointing to the fact that Bitcoin's price action does not always correlate with ETF flows.
Grayscale's record-breaking outflows
This comes as Grayscale is experiencing a "second wind" of outflows, as noted by Balchunas. On Wednesday, it bled another $281.57 million.
Notably, Grayscale outflows are greater than the dwindling inflows from new Bitcoin ETF issuers by the largest amount since launch.
Grayscale's Bitcoin holdings have now collapsed by more than 40% post-launch of a slew of Bitcoin ETFs on Jan. 11.
Net outflows from American issuers are nearing $749 million since the start of the week so far.
In fact, Grayscale's GBTC has now recorded the biggest outflows in history for any ETF.
No correlation?
Despite significant GBTC outflows, the Bitcoin price managed to stage a stunning recovery on Tuesday, surpassing $68,000.
As reported by U.Today, the lack of hawkishness in the comments made by Federal Reserve Chair Jerome Powell pushed cryptocurrency prices sharply higher. Powell has reassured the market about the rate cut outlook, which made various risk assets pare losses. Prior to that, the Bitcoin price plunged below the $61,000 level.
However, as noted by Balchunas, the Bitcoin price still had a sharp decline during the second part of the previous week despite strong ETF inflows.
Tomiwabold Olajide
Arman Shirinyan
Yuri Molchan
