3 reasons why Bitcoin price is up today

Bitcoin (BTC) price rose back above $70,000 for the first time in a week, recovering from the streak of negative flows into spot BTC exchange-traded funds (ETF) last week.

Data from Cointelegraph Markets Pro and TradingView shows the BTC price climbed from an opening of $67,212 to an intra-day high of $70,306 on March 25. At the time of publication, BTC was trading at $70,268, up 7.5% over the last 24 hours.

BTC/USD daily chart. Source: TradingView

Bitcon’s recovery follows a period of price downturn that has seen the cryptocurrency fall as low as $60,771, corroborated by negative ETF inflows. Could the surge in multiple BTC price metrics be a sign of things to come?

Weekly outflows into spot Bitcoin ETFs totaled $904 million

Last week “marked the end of a 7-week cycle” of inflows into crypto investment products as investors withdrew more than $942 million, according to a March 25 report by CoinShares.

The report noted that last week marked the “first outflow following a record 7-week run of inflows totaling US$12.3bn.”

Source: CoinShares

The crypto asset management firm attributed the large outflows to the recent drawdown in crypto prices, which “wiped US$10bn off total assets under management (AuM) but remain above prior cycle highs at US$88bn.”

CoinShares analyst James Butterfill said,

“We believe the recent price correction led to hesitancy from investors, leading to much lower inflows into new ETF issuers in the US, which saw US$1.1bn inflows, partially offsetting incumbent Grayscale’s significant US$2bn outflows last week.”

The poor sentiment was mostly focused on Bitcoin, which accounted for “96% of the flows” totaling $904 million, ”while short-bitcoin also saw minor outflows totaling US$3.7m.”

Weekly flows by asset. Source: CoinShares

Bloomberg analyst James Seyffart said that the large outflows witnessed by the spot Bitcoin ETFs last week were probably driven by bankrupt lender Genesis selling GBTC shares.

Source: James Seyffart