The recent decline in Bitcoin’s price has had a negative impact on the spot Bitcoin ETF market, as reported by analytics firm BitMEX Research. Over the last four trading sessions, these BTC ETFs have experienced negative netflows. This decline has been particularly noticeable in Grayscale’s GBTC outflows and the record low inflows for other ETFs like BlackRock’s IBIT and Fidelity’s FBTC. The gloomy outlook in the spot Bitcoin ETF market has been a cause for concern among investors.
Despite the ongoing decline in netflows, Ki Young Ju, a well-known analyst and CEO of Cryptoquant, has offered a glimmer of hope for the spot Bitcoin ETF market. In a recent post, Ju shared his prediction that there could be a resurgence in netflows for Bitcoin ETFs even as the price of BTC continues to drop. Drawing from historical netflow data, Ju pointed out that demand for Bitcoin ETFs tends to increase when the cryptocurrency reaches specific support levels.
According to Ju’s analysis, new BTC whales, particularly ETF buyers, have shown a significant on-chain cost basis of $56,000. This suggests that these new holders of Bitcoin, who are primarily invested in ETFs, have purchased the cryptocurrency at an average price of $56,000. Ju believes that if BTC were to reach this specified price level, the spot Bitcoin ETF market could witness substantial inflows from investors.
As of now, Bitcoin’s price has been fluctuating between $62,000 and $68-000 in the past week. Ju anticipates a further descent in price, considering that corrections in price usually result in a maximum decline of around 30%. Based on BTC’s recent high of $73,750, the analyst forecasts that the asset could potentially drop to as low as $51,000. At the time of writing, Bitcoin is trading at $64,065.74, reflecting a decrease of 3.73% in the last 24 hours and 7.17% in the past week.
Given historical trends in the bull market cycle, it is conceivable that Bitcoin may have already reached its price peak leading up to the halving event in April. If this is indeed the case, BTC may not return to its previous high price levels anytime soon and could experience further price declines in the coming weeks. It is essential for investors to remain cautious and conduct thorough research before making any investment decisions in the volatile cryptocurrency market.
Disclaimer: The views expressed in this article are for educational purposes only and do not necessarily reflect the opinions of NewsBTC. Investing in cryptocurrencies carries inherent risks, and individuals are advised to undertake their own due diligence before engaging in any investment activities. Please use the information provided in this article at your own discretion and risk.