Will Bitcoin Rally to $73,000 Again? Experts Weigh In

Bitcoin's price dropped below $63,000 during the U.S. trading session on Friday, continuing a broader cryptocurrency market sell-off. The decline has reversed a recent 10% surge that followed dovish comments from the Federal Reserve, with analysts attributing the current weakness to continued outflows from the Grayscale Bitcoin Trust (GBTC). Despite these outflows, Coinbase Institutional analysts believe that spot bitcoin ETFs could see inflows resume once GBTC selling is complete, given favorable macroeconomic conditions.

Will Bitcoin Recover to $73,000?

In the throes of a broader crypto sell-off, Bitcoin stumbled below the $63,000 mark during the U.S. session on Friday. It's been over a week since the flagship cryptocurrency plunged from its record high of $73,000, and experts are now grappling with the question: when will Bitcoin regain its former glory?

Novogratz: Recovery May Take Time

According to Mike Novogratz, CEO of Galaxy Digital, it might be a while before Bitcoin breaches the $73,000 threshold again. Speaking at the Bitcoin Investor Day in London, Novogratz said, "It will take some time before we take out that $73,000 again."

GBTC Outflows Dampening ETF Inflows

Another factor contributing to the recent Bitcoin price dip is the sustained net negative flows from Grayscale Bitcoin Trust (GBTC). Coinbase analysts point out that once GBTC selling concludes, ETF inflows could potentially resume, given favorable macroeconomic conditions and central bank policies.

Volatility Continues in Crypto Markets

Volatility remains a hallmark of the cryptocurrency market. Bitcoin's recent plunge below $63,000 from $67,000 earlier in the day showcases this inherent volatility. A modest rebound has brought the price back to the $64,000 range, but Bitcoin is still down 3.7% over the past 24 hours.

Coinbase Analysts: Macro Environment Supports Spot Bitcoin ETF Inflows

Despite the recent outflows, Coinbase Institutional analysts maintain that the macro environment is still conducive to spot Bitcoin ETF inflows. The report cites the Federal Reserve's dovish stance, stable price inflation, and the gradual easing of financial conditions as positive factors.

Additional Reporting by Helene Braun

The crypto market's roller coaster continues, with Bitcoin facing ongoing volatility and uncertainty. As analysts speculate on the timing of Bitcoin's recovery, investors should stay attuned to the interplay of factors shaping the cryptocurrency landscape.