Bitcoin ETF demand could increase as prices decrease

Bitcoin ETF Ki Young Ju
Bitcoin ETF: Ki Young Ju, CEO of CryptoQuant, has forecasted a potential resurgence in the spot Bitcoin exchange-traded fund (ETF) market if the price of BTC continues to decline.

In a post on March 22nd, Young Ju mentioned that netflows for spot Bitcoin ETFs could rise even amidst ongoing decreases in the BTC price. Drawing from historical net flow patterns, the CEO observed that demand for Bitcoin ETFs typically rises when the cryptocurrency approaches certain support levels.

Based on data from analytics firm BitMEX Research, spot BTC ETFs have experienced negative net flows over the past four trading sessions. This is characterized by continued outflows from the Grayscale Bitcoin Trust ETF and diminishing inflows into other BTC ETFs.

Young Ju highlighted that new BTC whales, particularly Bitcoin ETF buyers, have an on-chain cost basis of approximately $56,000. He anticipates significant inflows into the ETFs once Bitcoin drops to this level.

According to data from Cointelegraph Markets Pro, BTC’s price has fluctuated between $62,000 and $68,000 over the past week. Young Ju suggests the possibility of further price declines, considering that corrections typically result in a maximum drop of around 30%. This would potentially bring Bitcoin’s price down to approximately $51,000 from its recent all-time high of $73,750.

Bitcoin’s recent correction stemmed from overheated market conditions, described by analysts as a “pre-halving retrace” ahead of the Bitcoin halving event scheduled for April.

A recent report from CryptoQuant suggests that the Bitcoin bull cycle continues, buoyed by relatively low investment flows from new investors and price valuation metrics that remain below levels seen during previous market peaks.

Furthermore, the upcoming Bitcoin halving event has historically been a significant catalyst for the BTC price, often leading to a parabolic uptrend.

Also Read: Bitcoin’s Potential: From Bull Run to $500K?

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