Bitcoin is maintaining its position above $70,000, as seen in the photo by Chris McGrath via Getty Images. This is due to the influx of funds into spot bitcoin exchange-traded funds (ETFs) from major fund managers such as BlackRock and Franklin Templeton.
In the past week, there have been net positive inflows into spot bitcoin ETFs, a reversal from the previous week which saw outflows. This has contributed to the decline in bitcoin’s price from its all-time high of over $73,000 to a low of around $61,000.
The main contributor to last week’s downward pressure was the increased selling of the Grayscale Bitcoin Trust ETF (GBTC). However, analysts believe that this selling may be coming to an end and combined with the upcoming bitcoin halving event, could lead to a rise in prices.
According to blockchain analysis firm Arkham Intelligence, the GBTC, which holds over 347,000 bitcoins, is selling at a pace that will deplete its holdings in just 14 weeks.
Apart from the traditional finance sphere, the upcoming bitcoin halving is also expected to drive inflows into the market. This event, which happens every four years, will reduce the bitcoin reward for miners and could lead to a supply crunch and price appreciation.
According to Maconomics CEO Ross Mac, despite its volatility, bitcoin is a necessary asset in investors’ portfolios. He believes that with institutional investors’ involvement, bitcoin may become less volatile in the future. Mac also sees bitcoin as one of the greatest technological advancements of our time.
In the past 24 hours, the global cryptocurrency market has seen a 1.5% increase, with bitcoin being the dominant currency at 48.9% of the market. However, ether, the second-largest currency, has underperformed in the past week due to uncertainty surrounding the potential approval of a spot ETF by the US Securities and Exchange Commission (SEC).
According to analysts from Bloomberg, the chances of a spot ether ETF being approved in May have decreased due to the lack of engagement from US financial regulators with potential issuers.
Another major altcoin, Solana, has also seen a decline in the past week compared to bitcoin’s rally.
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