Bitcoin Hits $63,000 Following First Influx of Capital into GBTC

Bitcoin (BTC) reclaimed the $63,000 mark on Binance by the end of Friday as capital flowed back into immediate settlement Bitcoin exchange-traded funds (ETFs) in the United States.

Azcnews Bitcoin Hits $63,000 Following First Influx Of Capital Into Gbtc

Bitcoin reached $63,000 on Binance by the end of Friday as the flow of capital into Bitcoin exchange-traded funds (ETFs) in the United States resumed. Notably, Grayscale’s Bitcoin Trust ETF (GBTC) ended its streak of 80 days of capital outflows, attracting $63 million in capital inflows in the trading session, according to Coinglass data.

At the time of writing, Bitcoin was trading around $62,900, up 6.5% over the past 24 hours, according to CoinGecko. The leading cryptocurrency had dropped below $57,000 on Wednesday ahead of the Fed’s interest rate decision and FOMC meeting extension but began to recover after surpassing the $61,000 mark earlier today.

GBTC is the largest Bitcoin spot ETF with assets under management of over $18.7 billion. Before converting to an ETF earlier this year, the fund held around 620,000 BTC. GBTC has faced pressure from investor withdrawals, particularly since competing Bitcoin spot ETFs were approved in January. As of April 18, GBTC’s holdings had halved.

Related: Bitcoin Rises to $59,000 But Remains in Low Valuation Zone

Bloomberg ETF analyst Eric Balchunas expressed surprise at GBTC reversing its long-term capital outflow trend, saying, “We’re back.” While GBTC has seen recent gains, continuous outflows have allowed competitors like BlackRock’s iShares Bitcoin Trust (IBIT) to narrow the gap. As of May 2, IBIT held $17.2 billion in Bitcoin AUM.

The US Department of Labor reported that initial jobless claims remained stable at 208,000 for the week ending April 27, the lowest level since mid-February, indicating strength in the labor market. The employment cost index also rose 4.2% in the first quarter compared to the same period last year, reinforcing investor confidence. This data has led traders to believe that the Fed may cut interest rates by late 2024, creating a favorable environment for risk assets like cryptocurrencies.

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