The spot Bitcoin ETF market has been sluggish recently due to the fall in Bitcoin prices. Despite this continued decline in net flows, Ki Yong-joo, a prominent analyst and CEO of CryptoQuant, predicts a potential revival of the spot Bitcoin ETF market.
in post In X on March 22nd, Ki Yong-joo shared that the net flow of spot Bitcoin ETFs may increase despite the continued decline in Bitcoin prices. Using historical netflow trend data, the analyst noted that demand for Bitcoin ETFs typically begins when the cryptocurrency reaches a certain support level.
according to data According to analytics firm BitMEX Research, these BTC ETFs have recorded negative flows over the past four trading sessions. This situation is driven by a significant increase in Grayscale’s GBTC outflows and record low inflows into other ETFs, primarily market leaders BlackRock’s IBIT and Fidelity’s FBTC. is characterized by.
Young Ju pointed out that the on-chain cost basis for new BTC whales, especially ETF buyers, is around $56,000. This shows that significant Bitcoin holders, especially ETF investors, are typically acquiring Bitcoin at an average price of $56,000.
In line with this pattern, quantitative crypto experts expect large inflows into the spot Bitcoin ETF market if BTC reaches the aforementioned price threshold.
Bitcoin (BTC) price has fluctuated between $62,000 and $68,000 over the past week, according to data from Cointelegraph Markets Pro. However, Young Ju suggests that such a decline is plausible, given that adjustments typically result in declines of up to 30%. With BTC’s recent high of $73,750, analysts predict that BTC’s price could drop as low as $51,000.
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However, over the past 48 hours, BTC price has fallen 13% from its all-time high of $73,835, and at one point traded near $60,000. The correction was caused by overheating markets ahead of Bitcoin’s halving event, which is approximately 30 days away, in what analysts have dubbed the “pre-halving retrace.”
CryptoQuant’s report concludes that Bitcoin’s bullish cycle continues, given that investment flows from new investors are at a relatively low level and price valuation metrics remain below levels seen at past market peaks. It shows that it’s not finished.
Meanwhile, the upcoming Bitcoin halving event is expected to be an important driving force pushing up the BTC price, resulting in a parabolic uptrend. According to CoinMarketCap’s Halving Countdown, Bitcoin’s next halving event is less than 31 days away.
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