Bitcoin has experienced a decline of 5%, dropping below $69,000 amid concerns over inflation and selling by Grayscale. Grayscale transferred $400 million in Bitcoin to Coinbase, impacting market supply. Despite this, other Bitcoin ETFs are seeing record inflows, indicating persistent investor interest.
Bitcoin’s recent upward momentum has faced a setback, falling below $69,000 before a slight recovery above $70,000. This decline comes after reaching an all-time high of $73,700. Multiple factors contribute to this downturn, notably rising inflation concerns and significant selling pressure from Grayscale.
Evidence from the Bureau of Labor Statistics reveals a 0.4% increase in consumer prices last month, totalling a yearly rise of 3.2%, surpassing expectations. This inflation data raises worries that the Federal Reserve may maintain interest rates in May, triggering a sell-off in digital assets and stocks.
Furthermore, Grayscale has transacted a substantial $400 million worth of Bitcoin to Coinbase, presumably for liquidation purposes. Investors redeeming holdings in Grayscale’s Bitcoin Trust ETF, converted from a closed-end fund in January, contribute to this selling pressure, increasing Bitcoin supply and thus adversely impacting its market price.
Despite the outflows related to Grayscale’s ETF, other Bitcoin ETFs report record net inflows, suggesting robust ongoing demand for cryptocurrencies. This article contains links to third-party websites for informational purposes, for which CoinMarketCap assumes no responsibility for content or updates.
