Ramazan Eles 
Bitcoin (BTC) rallied above $49,000 on Monday, buoyed by a surge in spot exchange-traded fund (ETF) inflows and whispers of institutional buying. The leading cryptocurrency started the day near $48,000 before spiking to $49,100 at the opening of the U.S. trading session. At the time of writing, BTC trades just above $49,900, up roughly %3,43 in the last 24 hours and outperforming the broader market.
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This bullish momentum finds support in last week’s hefty inflows into spot Bitcoin ETFs, which raked in over $1.1 billion in net new capital. This coincides with a slowdown in outflows from established products like Grayscale Bitcoin Trust (GBTC) and ProShares’ futures-based ETF. However, a potential dark cloud hangs over the future of these inflows.
Genesis, a bankrupt crypto lender, holds a massive $1.6 billion in GBTC shares. The liquidation of these holdings could put downward pressure on ETF net inflows and prices in the coming months.
Despite this concern, macro analyst Noelle Acheson suggests Bitcoin benefits from increased accumulation. This accumulation is likely driven by anticipation of capital injections in China to counter its stock market woes and potential currency depreciation in developed economies.
In conclusion, Bitcoin’s recent rally appears fueled by positive sentiment surrounding spot Bitcoin ETFs and potential institutional interest. However, the specter of GBTC liquidation by Genesis poses a risk to the sustainability of these inflows and prices.