Bitcoin’s Bullish Momentum Wavers Amid Waning ETF Demand

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In the fast-paced world of cryptocurrencies, the celebrated Bitcoin, often referred to as the king of digital coins, has recently witnessed a tempering of its meteoric rise. Having barely clawed its way back to the $60,000 mark, its less than stellar price performance casts shadows on the coin’s bullish trajectory. Several factors come into play, not least of which is the waning demand for Spot Bitcoin Exchange-Traded Funds (ETFs).

The initial euphoria associated with Spot Bitcoin ETFs has somewhat dissipated. In their first three months of launch, the ETFs saw a torrent of net inflows, which totaled in billions of dollars, triggering an impressive rally in Bitcoin prices. This coincided with the approval of these funds, and Bitcoin, like the proverbial phoenix, soared to record an all-time high in March of this year. However, the enthusiasm has waned since the beginning of the month.

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Ribbons of drooping demand for the ETFs are also corroborated by the research firm Kaiko. Their recent reports underline an apparent and persistent slump in net inflows across all ETFs. This, in turn, has thrown a wrench into Bitcoin’s bullish momentum, sending it on a sideways trajectory. In light of the last 24 hours, this recovery of Bitcoin to breach the $60,000 cannot be warranted as a bullish reversal.

Veteran market watcher and Head of Prime Brokerage at Nexo, Andrey Stoychev, had forewarned that significant price surges for Bitcoin without a suitable catalyst are improbable. He even speculated that Bitcoin might continue its camp around the $67,000 price range. This suggests Bitcoin is poised to ping-pong between the planes of support and resistance in the interim.

Nonetheless, glimmers of hope are not entirely lost for the Spot Bitcoin ETFs. Demand might see a revival soon, and when it does, it could breathe new life into Bitcoin’s price, giving it the leg-up it needs. An imminent trend reversal for these ETFs seems likely, bolstered significantly by Grayscale’s GBTC which logged its first day of net inflows on May 3.

Well-respected crypto analyst, Mikybull Crypto, recently forecast that Bitcoin may take a downturn to extinguish the CME (Chicago Mercantile Exchange) gap lingering around $62,580. This anomaly is a byproduct of the Bitcoin futures market at CME not operating over weekends. However, he offered a silver lining, predicting an uptick once Bitcoin wades through the CME gap.

Mikybull avers that looking beyond whether Bitcoin continues its lackluster sideways hustle, the worst may be over as he vouches for the crypto token having hit rock-bottom. He is also optimistic that Bitcoin, after breaching the $67,000 threshold and consolidating, will be poised to land the $73,000 mark.

Wealth accumulation now seems favorable, particularly for Bitcoin. Crypto analyst Ali Martinez believes that Bitcoin’s Market Value to Realized Value (MVRV) 90-day ratio signals a “prime buy zone”. As things stand, however, Bitcoin remains somewhat subdued, trading at around $63,400, marking a decrease of over 1% in the last 24 hours according to CoinMarketCap data. This teetering of Bitcoin on the brink is a harsh reminder of the roller coaster ride that is the cryptocurrency market.