(CTN News) – Investors took comfort from the possibility that Grayscale Bitcoin ETF (GBTC) outflows mightoff as bitcoin climbed higher to end the week.
According to Coin Metrics, the cryptocurrency climbed over 5% to $41,828.37, slightly increasing its weekly gains to less than 1%.
The price of Ethereum traded at $2,270.92 on Friday, up 2%. The index is on pace to decline nearly 9% this week.
Thursday was one of the lowest days for net outflows from GBTC, and was the third consecutive day of declining outflows, indicating a slowdown in redemptions, Needham’s John Todaro said.
Although it has been difficult to quantify how much more should leave GBTC, we believe two of the largest factors driving selling – outflows driven by FTX estates and arbitrage funds – are nearing their end.
Nikolaos Panigirtzoglou, JPMorgan strategist, made a similar observation on Thursday, saying “GBTC profit taking has largely happened already… which would suggest that most of the downward pressure on bitcoin from that channel has passed.”
In a widely anticipated correction following the approval and launch of spot bitcoin ETFs in the U.S., bitcoin fell sharply at the start of the week and fell below $39,000 for the first time since early December.
Some chart analysts had predicted a calamity earlier this week, but it wasn’t as severe as they had predicted. Despite charts indicating bitcoin’s long-term uptrend still holds, some analysts expect the cryptocurrency to fall to as low as $36,000 in the near future.
There has been an outperformance of bitcoin mining stocks over the cryptocurrency itself. The stock of Riot Platforms rose by 6% on Friday. A 9% gain this week would mark the first positive week in five for the stock. The share price of Marathon Digital is up by 10% and the company is on track for a weekly gain of 11%.