Bitcoin rally is leveling off

• A total of capital flowed out of the Bitcoin ETFs yesterday, causing sales on the spot market.
• Once again, the sell-offs were dominated by the Grayscale Bitcoin ETF (GBTC).
• However, this is not a worrying effect because all other ETFs primarily record inflows.

Last week, bulls failed in their attempt to tackle the all-time high and the price rally petered out around $71,500. Barely a week later, investors were disillusioned as the price collapsed today. The preliminary low today is $65,080.

This means that the sales of GBTC still remain an issue, but do not change the long-term positive outlook for Bitcoin. Although GBTC's sales will continue, it is foreseeable that the powder will run out at some point.

The Bitcoin halving will take place at the end of April and will halve the rate at which new BTC are produced. This mechanism controls the money supply of Bitcoin and repeats every 4 years. This circumstance could have a direct impact on the market. If there are net inflows into the ETFs, then demand meets a tighter supply.