Bitcoin experienced a drop today, dipping below its recent record high to below $69,000 per coin. The dominant cryptocurrency has since rebounded and is now trading above $70,000 at the time of publication. According to CoinGecko, the current level of Bitcoin is much lower than the peak of $73,700 it reached yesterday. The recent surge in Bitcoin’s value can be attributed to the popularity of new spot Bitcoin exchange-traded funds (ETFs). However, Thursday’s data released by the Bureau of Labor Statistics revealed a 0.6% increase in the producer price index for the previous month. This key measure of inflation surpassed expectations, indicating that prices were higher in February. Traders saw this information as an indication that the Federal Reserve may not reduce interest rates in May, causing a decline in the value of digital assets and stocks. Another potential influence? Grayscale transferred approximately $400 million in Bitcoin to its custodian, Coinbase, according to data from Arkham Intelligence. The belief is that the inflation narrative may be a factor, but there could also be increased selling by Grayscale, though this can only be confirmed tomorrow. In January, the fund manager was seen disposing of a significant amount of digital coins, moving $2.2 billion to the exchange within a few days. This resulted in a decrease in the price. Grayscale began transferring its BTC to Coinbase to sell after converting its fund into a BTC exchange-traded fund (ETF) on January 10. According to James Butterfill, Head of Research at Coinshares, both of these events are contributing factors. Prior to the conversion to an ETF, Grayscale’s Bitcoin Fund operated as a closed-end fund, requiring investors to hold their shares for at least six months. With the switch to an ETF, investors are eager to redeem their holdings and realize profits. They are probably repeating that action once more. Even though there were redemptions in Grayscale, there were over $1 billion in net inflows for the nine other ETFs on Tuesday, setting a new record. Ryan Ozawa edited the article. Subscribe to receive daily updates on cryptocurrency news via email.