BTC Price Surges Above $59K as Spot Bitcoin ETF Outflows Ease Up

After days of suffering huge losses that led to its price rising to $56,500, Bitcoin rebounded on Thursday and during the early hours of Friday. This coincided with a slowdown in outflows from spot bitcoin exchange-traded funds (ETFs) in the United States compared to the record outflows of the previous day.

According to the latest data compiled by SoSoValue, Bitcoin ETFs saw a net outflow of $34.4 million on May 2.

Bitcoin ETFs experience slower outflows

BlackRock's IBIT and Fidelity's FBTC, the second- and third-largest BTC funds by total net assets, had no new inflows on Thursday. A similar trend was seen across Bitwise's BITB, VanEck's HODL, and WisdomTree's BTCW, which did not record any inflow.

However, prominent Bloomberg analyst James Seyphart has previously done so male Having days of zero flows is completely normal and should not be misinterpreted as a failure of the products themselves.

Meanwhile, Grayscale's GBTC, which has seen notorious outflows, was the only ETF to see a net outflow on Thursday, totaling $55 million, according to SoSoValue.

On the other hand, Ark Invest's ARKB led the daily net inflows with 13 million. Other spot Bitcoin ETFs from Franklin Templeton's EZBC, Valkyrie's BRRR, and Galaxy Digital's Invesco and BTCO recorded inflows of $3 million, $2 million and $1 million respectively, for a combined total of $6 million.

This comes a day after the market witnessed a record level of outflows for these investment instruments, recording the highest level ever at more than $563 million. Fidelity's FBTC, which began to lose its grip last week, recorded $191 million in outflows from the fund, surpassing GBTC's outflow.

May 1 was also the first time BlackRock's IBIT recorded a daily net outflow amid the broader market pullback that sent Bitcoin falling to lows of $56,500.

Bitcoin recovery

The market appears to be recovering as Bitcoin posted modest gains of 3% over the past day pushing its price above $59,300 following the FOMC's dovish stance. like male By QCP Capital Chairman Jerome Powell stated that the Fed is not considering raising interest rates and announced a reduction in quantitative tightening (QT) from $60 billion per month to $25 billion during the FOMC meeting.

Likewise, in the RRA, the Treasury plans to keep issues with longer maturities unchanged, alleviating concerns about rising long-term yields. This approach is expected to dampen the US dollar's rise, which in turn bodes well for risky assets like Bitcoin and other cryptocurrencies.