The Grayscale Bitcoin Trust (GBTC) has experienced a significant drop in outflows, reaching a record low that was nearly 90% lower than the previous day. This shift coincided with Bitcoin’s price rebound after the latest United States inflation data was released, introducing volatility into the market.

On April 10, GBTC saw outflows amounting to $17.5 million, a stark contrast to the $154.9 million recorded on April 9, based on data from Farside. The price of Bitcoin has also seen a 2.08% increase over the last 24 hours, now valued at $70,542 according to CoinMarketCap.

Crypto industry observers have expressed optimism that the slowdown in GBTC outflows, which have amounted to $16 billion since transitioning to a spot Bitcoin ETF in January, may be starting. Among BTC ETFs, only BlackRock IBIT, Fidelity FBTC, ARK’s ARKB, and Bitwise BITB registered positive inflows on April 10, according to Farside data.

The upcoming Bitcoin halving, expected around April 20, is another focal point for the market. Halvings have historically led to a surge in Bitcoin’s price due to reduced supply growth. With the current enthusiasm around spot Bitcoin ETFs, the market anticipates even greater demand, potentially intensifying the rally.

In an interview on April 9, Fred Thiel, CEO of Bitcoin mining firm Marathon Digital, suggested that recent spot Bitcoin ETF approvals have brought substantial capital into the market, accelerating market appreciation. Experts indicate a continued bullish market driven mainly by growing demand rather than the halving’s supply cut.

Andras Kristof, CEO and co-founder of Galaxis, mentioned that if demand for the new ETFs remains high, it will add to the daily buying pressure, potentially leading to a significant spike in Bitcoin price and volatility. Institutional investors are likely to join the market as the fear of missing out grows.

The halving effect combined with the current market dynamics could lead to further price increases and heightened volatility in the cryptocurrency market.

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