Bitcoin ETF Volumes Remain High Despite BTC Price Drop, Will Inflows Increase Again?
Bitcoin ETF flows were once again in positive territory with total inflows of $485 million over the past week. However, the pace of BTC ETF inflows has slowed, and many question whether this will help Bitcoin continue its rise to $100,000.
Bitcoin ETF Volumes Remain High
Despite the Bitcoin price correcting from its all-time high to below $70,000, trading volumes for Bitcoin ETFs remain high.
Trading volume has remained strong even four weeks after Bitcoin’s all-time high, according to on-chain data provider Santiment. In particular, trader activity on various platforms such as GBTC, IBIT, FBTC, ARKB, BTCO, BITB and HODL continues to exceed the levels observed since the end of February, indicating continued market interaction since then.
With the halving event on April 19 approaching, this increased activity is expected to continue. However, there is speculation about the potential for declines in both ETF volume and on-chain volume immediately following the halving, increasing interest in observing post-halving market dynamics.
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BTC Price Movement Ahead
The sustained demand for BTC-spot ETFs serves as a bullish indicator for BTC, especially as the Bitcoin halving event approaches in the next ten days. The upcoming reduction in supply, combined with persistent demand from the BTC spot ETF market, could potentially push BTC prices towards $80,000.
However, the Federal Reserve’s monetary policy remains an important factor influencing BTC-spot ETF market dynamics. Changes in US economic indicators could impact demand for BTC, especially in response to possible interest rate adjustments by the Fed. Inflation data to be announced in the US this week is expected to affect market expectations regarding a possible interest rate change by the Fed in June.
BTC confirmed bullish price indicators by remaining comfortably above both the 50-day and 200-day EMAs. A breakout of BTC above the $70,000 barrier could provide bullish momentum and potentially challenge the all-time high of $73,808 (ATH) reached on March 14. If ATH is exceeded, the $75,000 level could become the target of the bulls.
Market watchers should closely monitor BTC spot ETF market flow data, US economic indicators and Federal Reserve statements on Monday. On the other hand, BTC’s decline below the $69,000 support level could signal a potential decline towards the $64,000 support level.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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