The cost of a bitcoin (BTC) decreased by 3% on the 16th of April due to crypto investors adopting a more cautious approach, triggered by weak demand for Bitcoin ETFs.
Based on the data from CryptoMoon Markets Pro and TradingView, the Bitcoin price on Binance reached its lowest point of $61,709 around the time of the Wall Street opening on April 16.
On the same day, Bitcoin followed the downward trend of U.S. stock markets, while the U.S. Dollar Index hit a six-month peak at 106.17.
On April 15, there was a net withdrawal of $36.7 million from Bitcoin spot ETFs (Exchange-Traded Funds) as reported by Farside Investors’ data.
“The demand for a Bitcoin ETF, as mentioned by CryptoQuant’s founder and CEO Ki Young Ju, has not shown significant growth over the past four weeks.”
On those specific days, April 12 and 15, data from Farside Investors showed that only Grayscale and BlackRock saw Bitcoin ETF inflows, while all other funds experienced no activity whatsoever.
According to the most recent analysis by CryptoQuant, the increase in interest for Bitcoin from U.S. Exchange-Traded Funds (ETFs) has decreased.
“Demand from ETFs (blue line) has also slowed down significantly from its March peak.”
At the same time, according to a previous analysis from CryptoMoon, large Bitcoin holders continued to keep their coins amidst the recent decline in Bitcoin’s price.
In simpler terms, Young Ju’s findings support the idea that the total amount of Bitcoin being held has grown, even though fewer Bitcoins are entering the market each day.
“On-chain accumulation remains very active, even when excluding ETF settlement transactions.”
The announcement of Bitcoin ETF approval in Hong Kong didn’t lead to a price increase in Bitcoin prior to the upcoming halving event.
Michael Gu, the founder of Boxmining, expressed that Hong Kong’s Bitcoin ETFs function as a trial ground for Chinese funds to invest in the market.
BTC price needs to consolidate before new all-time highs
According to Tom Dunleavy, a cryptocurrency expert and partner at MV Capital, the current Bitcoin market reveals that more than 40% of its value is held by long-term investors. Historically, this percentage has only reached around 10% during previous Bitcoin price peaks.
“With a number of continued catalysts (Halving, further ETF flows, BTC L2s), we think there is no reason to suspect a near-term sustained pullback. Full speed ahead to $150k by early 2025.”
With a positive outlook, trader Bob Loukas studied various signals on the daily Bitcoin chart, leading him to believe that a period of price stabilization might occur over the next two months prior to a significant price trend emerging.
CryptoQuant analysts added,
“Investors have reduced their exposure to BTC ahead of this week’s Bitcoin halving (expected by April 20) and could be waiting on the sidelines for the situation in the Middle East to deescalate.”
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2024-04-16 23:59