Negative flows into ETFs continue: will Bitcoin continue its decline?

Important facts:
  • For the first time, 5 consecutive days of withdrawals were recorded in a Bitcoin ETF in the United States.

  • Bitcoin remains below $68,000.

Bitcoin exchange-traded funds (ETFs) in the United States ended their worst week ever, hurting the currency’s price and putting its continued growth at stake. This is according to data collected by research firm Bitmex Research.

the figure show There were outflows from the ETF amounting to nearly $900 million (USD), the largest amount since entering the market two months ago. And it shows that he recorded the longest period of consecutive departures: 5 consecutive days.

According to the firm this is the result This resulted in the largest-ever weekly sale of Bitcoin by an ETF. (13,500 BTC). In the meantime, they retain the 200,000 BTC they have accumulated since launch.

Buying (black) and selling (red) of Bitcoin in the Bitcoin ETF since launch. Source: Bitmex Research.

The ETF came under selling pressure after two months of daily purchases of Bitcoin due to sustained capital inflows. With such behavior, the currency price fell from new all-time highs reached last week at around US$73,700.

Capital flows of Bitcoin ETFs in the United States since launch. Source: Bitmex Research.

As can be seen in the graph trading viewThe price of Bitcoin has remained between US$60,000 and US$68,000 during the week. At the time of this publication, it is trading around US$64,000.

Bitcoin price last week. waterfall: trading view,

A positive sign is that outflows into ETFs have continued this week, but they have decreased sharply in recent days. Furthermore, another factor creating optimism is that almost all capital withdrawals were from Grayscale (GBTC). Others maintained inflows, although they did not exceed GBTC’s negative inflows.

Should ETF capital flows turn positive again, they will create bullish pressure for Bitcoin. but otherwise It is expected that emphasis will be placed on price improvement,

“As we approach halving, this profit-taking is more likely to continue, especially in the context of the situation, which despite last week’s improvement is still “Appears to be overbought.”

The price of Bitcoin has fallen within days to a historic close to its halving due to profit-taking amid a bullish trend. The event, which halves BTC issuance every four years, has its next date in April 2024.

Bitcoin market defends price above US$60,000

According to on-chain data and analytics company NodeCharts, Huge purchases worth more than US$60,000 were made last month, Therefore, it is expected that the market will defend this price zone by strengthening demand. He says that if the price manages to stay above US$65,000 then the price will reach levels above US$70,000.

Meanwhile, an analysis shared by on-chain research company, CryptoQuant, indicates that Bitcoin is still some way off rising again. “It is time to wait for some time until the purchasing power of American institutions and whales increases,” he says.

As CryptoNoticias shared, they believe that, given the optimistic macroeconomic data, Bitcoin market will return to bullishness before mid-2024 With purchases from larger investors who have more capital.

Leave a Reply

Your email address will not be published. Required fields are marked *