Headwinds to Bitcoin (Bitcoin) Despite the early success of some US-listed spot exchange-traded funds (ETFs), stock prices continue to linger, which could contribute to price declines in the coming days.
Bitcoin prices have fallen as much as 15% since the long-awaited ETF listing last week, with outflows from Grayscale's Bitcoin Trust product said to be contributing to the downward pressure.
ETF volume data provided by BlackRock (BLK), Fidelity, and Bitwise surpassed the cumulative $500 million mark earlier this week, indicating demand from regulated funds and professional traders. Coinbase (COIN), a custodian for multiple ETF providers, has seen its OTC desk transfer volume hit a record high.
However, on-chain analytics firm CryptoQuant said in a Thursday note shared with CoinDesk that further downside risks remain.
“Several on-chain metrics and indicators suggest that the price correction may not be over yet, or at least that a new rally is not yet planned,” CryptoQuant analysts said. . “Short-term traders and large Bitcoin holders are still selling heavily in a ‘risk-off’ attitude.
“Furthermore, unrealized profits have not fallen to the point where sellers are exhausted,” he added. The company was one of the few companies to take a contrarian view on the approval of a Bitcoin ETF, which many traders expected would lead to a price increase after the ETF's approval.
Cryptocurrency traders echoed the same sentiment, pointing out that spot selling appears to have occurred and the strength of the top price has weakened.
“Bitcoin's intraday range was above 3.5%, but the high of the recent trading range was reached early Wednesday,” Alex Kupczykevich, senior market analyst at FxPro, said in an email to CoinDesk. “There has been a systematic decline in prices,” he said.
“Intraday dynamics instead indicate a sharp rebound and systematic selling near local highs, albeit in low volume. Although this is a cautious view, This is by no means a verdict on the crypto bull market,” Kupczykevich added.
