tl;dr
Bitcoin took a hit, falling below its all-time high before recovering. This drop was due to the producer price index jumping 0.6% last month, leading to a sell-off of digital assets and stocks. Grayscale also shifted a large amount of Bitcoin to Coinbase, and investors have been redeeming their hold...
Bitcoin took a hit, falling below its all-time high before recovering. This drop was due to the producer price index jumping 0.6% last month, leading to a sell-off of digital assets and stocks. Grayscale also shifted a large amount of Bitcoin to Coinbase, and investors have been redeeming their holdings and taking home profits. Despite these redemptions, net inflows for other ETFs trading passed the $1 billion mark, reaching a record high.
Bitcoin today took a hit—falling well below its fresh all-time high to under $69,000 per coin. The biggest digital coin by market cap has since recovered and is back above $70,000 at time of writing. But it's significantly below the $73,700 level it hit yesterday, CoinGecko shows. Bitcoin has been on a roll thanks to the massive success of new spot Bitcoin exchange-traded funds (ETFs). But then data dropped on Thursday from the Labor Department's Bureau of Labor Statistics showing that the producer price index jumped 0.6% last month. The important inflation indicator showed that prices were higher than expected in February, leading to a sell-off of digital assets and stocks. Another possible factor was around $400 million in Bitcoin shifted by Grayscale to its custodian, Coinbase. Grayscale had previously moved $2.2 billion in a matter of days, leading to downward pressure on the price. Despite these redemptions, net inflows for nine other ETFs trading passed the $1 billion mark, reaching a record high.
Disclaimer: The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.