In a recent wave of tumultuous trends in the cryptocurrency market, Bitcoin’s price decrease has cast a dark shadow over the spot Bitcoin ETF market. Recent statistics from analytics powerhouse BitMEX Research show these Bitcoin ETFs riding a wave of negative net flow for four consecutive trading stints.
The scene is colored by high outflows from Grayscale’s GBTC and shy inflows recorded by other ETFs, most notably market frontrunners BlackRock’s IBIT and Fidelity’s FBTC. Amid the persistent downward spiral of these netflows, a ray of hope emerges from the prediction of a potential resurgence by the discerning analyst and CEO at Cryptoquant, Ki Young Ju.
In a digital transmission on March 22, Young Ju offers an intriguing hypothesis. A surge in spot Bitcoin ETFs’ netflows could be pending, in spite of BTC’s drooping price. From a meticulous examination of historical netflow patterns, the analyst surmises that an uptick in demand for Bitcoin ETF occurs when the cryptocurrency gravitates toward certain support thresholds.
Young Ju discerns that new Bitcoin whales – chiefly ETF investors – tend to operate with a $56,000 on-chain cost basis. This indicates that these whale investors, those making significant forays into Bitcoin through ETFs specifically, are typically acquiring Bitcoin at the mean price of $56,000. According to this trajectory, Young Ju, Cryptoquant’s mastermind, foresees a tidal wave of inflows into the spot Bitcoin ETF market if Bitcoin’s price hits the specified figure.
At present, Bitcoin’s price is vacillating, dipping between $62,000 and $68,000 over the previous week. However, Young Ju reasons that a descent to $56,000 is plausible, as typical price adjustments could cause a decrease of up to 30%. Based on Bitcoin’s newest zenith of $73,750, he prognosticates that the asset could still plumb depths as low as $51,000.
As it stands, the Bitcoin ticker records a value of approximately $64,065.74. This exemplifies a descent of 3.73% and 7.17% over the past day and week, respectively. Simultaneously, Bitcoin’s daily trading volume has slumped by 3.53%, valuing it at a hefty $39.62 billion.
An interpretation of previous bullish cycle trends might suggest that Bitcoin has reached its apex in the lead-up to April’s halving event. If this holds true, Bitcoin may not revisit its former lofty price levels in the immediate future and might face additional price declines in the weeks to come. At the moment, Bitcoin steadies the ship trading at $64,315.00 on the hourly chart. The tale of volatility in the cryptocurrency market is nothing unheard of; market watchers wait to see how this saga unfolds.
