For the first time in seven weeks, the broader digital currency ecosystem has recorded its first weekly outflow, with more than $942 million taken off the market. According to a report by CoinShares, the massive outflow recorded by Grayscale Bitcoin Trust (GBTC) sparked the downtrend.
The crypto inflow-outflow chart presents an intriguing narrative. The record $942 outflow comes immediately after a week that bagged the biggest inflow since the start of the year. In seven weeks, a total of $12.3 billion has been recorded in total flow into crypto investment products from institutional investors.
For the past week, new Bitcoin ETF issuers raked in $1.1 billion, helping to offset the $2 billion outflows recorded by Grayscale. Consequently, Bitcoin suffered the biggest outflow, with a total of $904 million recorded. Bitcoin’s month-to-date (MTD) inflow comes in at $4.517 billion, while the year-to-date (YTD) figure is pegged at $11.964 billion.
Even though the United States Securities and Exchange Commission (SEC) has not greenlighted a spot Ethereum ETF, ETH suffered a mild outflow for the past week, coming in at $34.2 million. While the YTD figure comes in at $87 million, the MTD is pegged at a $46.4 million loss.
Rebalancing netflow and price outlook
The outflow for the past week underscores the tense setting of the crypto market and the need for a major correction on the market. The outflow was also accompanied by a slowdown in the price of Bitcoin, which dropped to a low of $60,940 from the all-time high (ATH) of $73,750.07 printed 11 days ago.
At the time of writing, Bitcoin’s price is pegged at $67,126.98, up by 2.38% in 24 hours. With the early Monday uptick recorded by the ETF market, a revived accumulation trend might help revive the bullish sentiment that may help BTC end March on a more positive note.