The recent decline in the price of Bitcoin has had a significant impact on the spot Bitcoin ETF market. According to data from BitMEX Research, there has been a negative netflow in the BTC ETF market for the last four trading sessions. This trend is characterized by large outflows from Grayscale’s GBTC and record low inflows for market leaders such as BlackRock’s IBIT and Fidelity’s FBTC.
Despite the current state of the spot Bitcoin ETF market, analyst Ki Young Ju has provided an optimistic outlook. Ju, the Chief Executive Officer at Cryptoquant, believes that there is a possibility of a resurgence in the market. He pointed out that historically, demand for Bitcoin ETFs tends to increase when the cryptocurrency reaches certain support levels. Ju also highlighted that new BTC whales, particularly ETF buyers, have a $56,000 on-chain cost basis, indicating that they bought Bitcoin at an average price of $56,000. This insight suggests that there could be significant inflows into the spot Bitcoin ETF market if BTC reaches the specified price level.
Currently, Bitcoin is trading between $62,000 and $68,000, with Young Ju suggesting that a further descent is possible. He noted that price corrections typically see a maximum decline of around 30%, based on Bitcoin’s recent high of $73,750. This analysis implies that the asset price could potentially drop to $51,000.
At the time of writing, Bitcoin is valued at $64,065.74, showing a decline of 3.73% in the last 24 hours and 7.17% in the last seven days. The daily trading volume has also decreased by 3.53% and is currently at $39.62 billion. Considering the historical trends of the bull cycle, some experts suggest that Bitcoin may have already reached its price peak leading up to the halving event in April. This could mean that Bitcoin might not return to previous high price levels anytime soon and may experience further price drops in the coming weeks.
The spot Bitcoin ETF market is currently experiencing a downturn due to the decline in Bitcoin’s price. However, there is optimism from analysts like Ki Young Ju, who believe that there is a possibility of a resurgence in the market. While price predictions and market analysis indicate potential further declines, the future of Bitcoin spot ETFs remains uncertain. Investors are advised to conduct their own research and make informed decisions when it comes to investing in Bitcoin and other cryptocurrencies.