Bitcoin ETFs Bleed — Can Price Recover To $73,000?

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Last week was rough for Spot Bit­coin ETFs as they failed to attract strong inflows day after day. As a result, these Spot Bit­coin ETFs wit­nessed con­sec­u­tive dai­ly out­flows every day last week, indi­cat­ing the bull­ish sen­ti­ment among insti­tu­tion­al traders might actu­al­ly be wan­ing. This seems to have been reflect­ed in the price of Bit­coin, as the cryp­tocur­ren­cy fell to as low as $61,370 dur­ing the week. 

Bitcoin ETFs See Sustained Outflows

Investor inter­est in Spot bit­coin ETFs sky­rock­et­ed through­out Feb­ru­ary and ear­ly March amid Bitcoin’s bull run, push­ing its price to an all-time high of $73,737.

This max­i­mum investor inter­est saw the ETFs set­ting new trad­ing records for exchange-trad­ed funds in the US. How­ev­er, these ETFs have now set a neg­a­tive record of five con­sec­u­tive days of out­flows to beat a four-day out­flow streak set in January.

Accord­ing to data from Bit­MEX Research, these ETFs wit­nessed five days of con­sec­u­tive out­flows of $154.4 mil­lion, $326.2 mil­lion, $261.6 mil­lion, $93.1 mil­lion, and $51.6 mil­lion. At the same time, Grayscale’s GBTC set a new record for the most dai­ly outflow. 

Bit­MEX also reveals that the world’s largest cryp­to asset man­ag­er saw redemp­tions of 9,539.7 BTC worth over $642.5 mil­lion on Mon­day, the largest sin­gle-day out­flow in GBTC’s history.

Grayscale’s out­flow wasn’t par­tic­u­lar­ly sur­pris­ing, con­sid­er­ing that the fund has wit­nessed con­sis­tent dai­ly out­flow since its launch. The sur­prise came from very weak inflow into oth­er Spot ETFs like Black­Rock (IBIT) and Fideli­ty (FBTC), whose huge inflows have always off­set out­flows from GBTC. 

Par­tic­u­lar­ly note­wor­thy is the fact that Black­rock (IBIT), which has con­sis­tent­ly been the tar­get of the major­i­ty of inflow, estab­lished a new inflow low of $18.9 mil­lion on Fri­day, March 22. Fideli­ty, on the oth­er hand, also saw its inflow fall to as low as $5.9 mil­lion on Mon­day, March 18.

Bitcoin is now trading at $65.122. Chart: TradingView

Can Bitcoin Price Recover?

The big ques­tion now is whether Bit­coin can stage a strong recov­ery and reclaim its recent all-time high above $73,000. A con­tin­u­a­tion of out­flows from Spot Bit­coin ETFs could fur­ther weigh on Bit­coin price. 

Inter­est­ing­ly, the weak inflow hasn’t real­ly relat­ed to low trad­ing activ­i­ty, as trad­ing vol­ume remained sig­nif­i­cant through­out the week. Data shows that the cumu­la­tive trad­ing vol­ume of the 10 ETFs is now at $164 bil­lion after wit­ness­ing $22.71 bil­lion in trad­ing vol­ume last week.

After a week of deep out­flows, the com­ing days will be cru­cial in deter­min­ing the next major move in the price of Bit­coin. Despite the rough week, Bit­coin still has a chance to rebound back to $73,000 or high­er, espe­cial­ly with the approach of the next Bit­coin halv­ing event

Fea­tured image from Pex­els, chart from TradingView

Dis­claimer: The arti­cle is pro­vid­ed for edu­ca­tion­al pur­pos­es only. It does not rep­re­sent the opin­ions of News­BTC on whether to buy, sell or hold any invest­ments and nat­u­ral­ly invest­ing car­ries risks. You are advised to con­duct your own research before mak­ing any invest­ment deci­sions. Use infor­ma­tion pro­vid­ed on this web­site entire­ly at your own risk.

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