After a bad, very bad day for Bitcoin that saw the world’s oldest and largest cryptocurrency sink below $62,000, BTC has surged again.
BTC rose to $68,120.08 early Thursday morning. By mid-morning, the price of Bitcoin had stabilized at $66,828.32 after rising 6% in the past 24 hours, according to CoinGecko data.
The prices are not yet fully consistent with what they were a week ago. But this time last week, Bitcoin had surged past $73,000, hitting a new all-time high.
Cryptocurrency prices plummeted earlier in the week due to “unusual activity” by traders on cryptocurrency exchange BitMex. A series of large repeat sell orders caused the price of BTC to plummet to $8,900 on the BitMex spot exchange.
“However, this incident had no impact on the multi-billion dollar derivatives market,” the exchange said in a statement. on. “Our indices are independently and thoroughly tested, so the quoted price did not move and this did not trigger a liquidation.”
BitMex added that its compliance team is continuing to investigate the accounts and transactions that triggered the 10-minute flash crash.
However, a reversal has yet to be seen in Bitcoin ETF flows.
Yesterday was the day when Bitcoin funds recorded more withdrawals than deposits. Yesterday, investors bought back $261 million worth of Bitcoin ETF shares, bringing total net redemptions this week to $742 million, according to CoinGlass.
However, when viewed individually, the withdrawals from Grayscale Bitcoin Trust (GBTC) were quite stark. Investors bought back $387 million worth of GBTC shares yesterday, meaning a total of $1.5 billion worth of outflows from the troubled fund this week.
The GBTC outflow and continued deposits into BlackRock’s iShares Bitcoin Trust (IBIT) mean the spot Bitcoin ETF category may soon have a new leader.
At the time of writing, IBIT holds 238,000 BTC compared to GBTC’s 361.6 BTC. If GBTC withdrawals and IBIT deposits continue at roughly the same rate, BlackRock could take the top spot in early April.
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