Bitcoin Dips Below $70,000 as ETF Flows Record Negative Turn; Analysts Remain Hopeful for Recovery
Summary:
On April 9, Bitcoin's price dropped below $70,000, marking a 4.3% decrease within one day. Despite Bitcoin's previous surge, Exchange Traded Funds witnessed significantly negative flows, leading to net outflows of over $200 million. However, the two largest ETFs managed to avoid losses. Traders are on the lookout for signs of an upward shift, with some anticipating Bitcoin's price to hold above $71,400 which could then usher in new all-time highs.
On April 9, Bitcoin (BTC) experienced a dip, dropping below the $70,000 mark as the initial enthusiasm surrounding the weekly closure diminished. The downturn of BTC was seen gathering pace ahead of the commencement of trading at Wall Street, with the data from Cointelegraph Markets Pro and TradingView. The day saw a significant drop of 4.3%, bottoming out at $69,635 on Bitstamp in comparison to the previous day's high, reflecting a fluctuating short-term mood.
The first trading session at Wall Street for the week broadly disheartened Bitcoin investors. Spot Bitcoin exchange-traded funds (ETFs) in the United States saw little influx of capital, and when coupled with a $300 million outflow from the Grayscale Bitcoin Trust (GBTC), there were massive negative net flows for the day.
Data from different sources, including Farside, a UK-based investment firm, indicates that the net outflows amounted to just over $200 million. Despite the surge in Bitcoin on the previous day, analyst Mark Cullen noted that the ETF flows were significantly negative, marking one of their largest-ever low inflow days.
However, the two biggest ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC) managed to dodge losses by sustaining a consistent streak of inflows. Investors anticipated better net flows after Genesis, the insolvent crypto lender, stated last week about completing a multi-billion-dollar offloading of GBTC shares that it intended to transform into BTC.
WhalePanda, a renowned commenter, partially attributed the sluggish movement of ETF flows given the price action to profit-taking, despite ETFs usually being long-term holdings.
Meanwhile, traders are closely observing the short-term BTC price trends, searching for indications of an upward reverse shift. Crypto Ed initiated the week with an $80,000 target but is now eyeing a $73,000 level as the starting point for an upward trajectory. Jelle, another trader, referencing the day’s return to near $69,000, anticipates new record highs once the price successfully maintains above $71,400.
Others, including trader and chartist Credible Crypto, predict a fresh dip to $60,000 or below.
This news should not be considered as investment or trading recommendations. Trading and investing involve risks, so it is advised that individuals should conduct their research before making any decisions.
Published At
4/9/2024 11:59:00 AM
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