Bitcoin ETF Netflows May See an Upsurge Amidst Falling Prices, Foresees Expert
Despite a recent bearish trend in the Bitcoin ETF market, there might be a light at the end of the tunnel. Observations reveal a downward trend in Bitcoin ETF netflows over the past four trading sessions, characterized by substantial outflows from Grayscale’s GBTC and record low inflows for other ETFs such as BlackRock’s IBIT and Fidelity’s FBTC. Yet, Ki Young Ju, the Chief Executive Officer at Cryptoquant, foresees a potential revival of Bitcoin ETF netflows even amidst the current downturn in BTC price. He surmises that the demand for Bitcoin ETFs typically surges when the cryptocurrency reaches specific support levels. A keen observation reveals that new BTC whales, primarily ETF investors, have an on-chain cost basis of $56,000. This indicates that large-scale Bitcoin holders in ETFs generally bought at an average price of $56,000. Following this pattern, if BTC manages to hit this specific price, the Bitcoin ETF netflows could witness a significant surge. At present, Bitcoin’s price has been fluctuating between $62,000 and $68,000, but Young Ju considers a drop down to $56,000 as plausible. This is due to the fact that price adjustments typically experience a maximum fall of 30%, which could take BTC’s price as low as $51,000. Currently, Bitcoin is trading at $64,065.74, showing a decline of 3.73% and 7.17% in the last one and seven days, respectively. Considering the historical tendencies of the bull cycle, Bitcoin might have hit its price ceiling leading up to April’s halving event. This could imply further price declines in the forthcoming weeks.
Not financial advice. Always be safe and secure when dealing with cryptocurrency. Never send anyone your private key. Always Do Your Own Research..DYOR..DYOR..DYOR!
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