Bitcoin reaches $70,000 after “red” week for ETFs

Important facts:
  • After 7 positive weeks, this was the first negative for cryptocurrency investment funds.

  • Bitcoin’s decline can be considered a correction in the bullish macrotrend.

Bitcoin (BTC) has shown recovery today and its price has reached $70,000. This happened after a fall-filled week.

Over the past five days, Bitcoin has fallen to $60,700, representing a 17% decline since reaching its all-time high price of $73,000 on March 14. In the following graph of trading view You can see how much he has recovered.

BTC price. Source: TradingView.

BTC’s underperformance was largely a result of the performance of Bitcoin and cryptocurrency investment funds, which recorded outflows totaling $942 million last week. These funds are mainly used by institutional and corporate investors.

this was it First negative week after seven-week positive streak These financial vehicles total $12.3 billion, according to report From CoinShares.

Trading volume across various investment funds, however, exceeded US$28 billion during the week, They were only able to reach two-thirds of what they achieved last week,

The following graph shows the capital flows of cryptocurrency investment funds week by week:

Withdrawals from funds investing in BTC and cryptocurrencies last week. Source: CoinShares.

“The recent price correction has wiped off $10 billion from total assets under management (AUM), but remains above last cycle’s high of $88 billion,” CoinShares says.

James Butterfill, head of research at CoinShares, believes that the decline in the price of BTC and the rest of the market “has created skepticism among investors, which has led to very low inflows into new ETF issuers in the United States.”

He 96% of outflows were Bitcoin, outflows of $904 million recordedWhile Bitcoin short positions also recorded a modest outflow totaling $3.7 million.

When there is an outflow of capital from the ETF, the managers may sell the Bitcoins that back them. Bitcoin traders apparently interpret capital outflows as a selling indicator, which drives down the price of the asset. This took the price of BTC to $61,000 after reaching its all-time high of $73,000.

In the case of BlackRock Company’s Bitcoin ETF (IBIT), it is by far the fund that has had the best performance since its launch. it Its total inflows were its lowest ever with just $19 million last Friday, However, with the Fidelity Company ETFs (FBTC), they have generated inflows every day since they began trading on the American Stock Exchange, as shown data From Bitmex Research.

Well, according to Bloomberg Intelligence analyst Eric Balchunas, it’s something like this Only 30 other ETFs have done this And none of them did it from the beginning. “It’s also quite surprising that IBIT now accounts for more than half of BlackRock’s net inflows and has absorbed twice as much as its other 420 ETFs.” couple,

Overall, the ETF saw inflows of $1.1 billion, partially offsetting the $2 billion outflow of the Grayscale ETF (GBTC) last week.

For his part, Bloomberg Intelligence analyst James Seifert, think over This departure is related to the bankruptcy of the Genesis cryptocurrency company.

It should be remembered that a judge has approved an order that allows Genesis to sell part of its Grayscale investments, as reported by CryptoNoticias last February.

Seifert says the departures were mostly Genesis sales, But hopefully it will subside this week, As mentioned earlier, this could be the reason for the correction that Bitcoin has seen today.

For all this, what happened with Bitcoin and the decline it experienced in recent days can be considered a natural correction steeped in a bullish macrotrend.

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