Bitcoin Faces Slowdown Amid Declining Institutional Investments and ETF Concerns
Summary:
Bitcoin (BTC) showed signs of sluggishness on February 23 amid a slowdown in institutional investments and concerns over inflows into Bitcoin exchange-traded funds (ETFs). After the net outflow of $36 million on February 21, stronger activity was reported the next day with net inflows of $251 million. Analysts believe essential support levels are beginning to come back into play, suggesting an uptick in momentum could be on the horizon.
On February 23, Bitcoin (BTC) continued to display signs of sluggishness as it attempted to consolidate after a brief decrease in institutional investments. BTC's value showed signs of struggling, fixated around $51,000, according to data from Cointelegraph Markets Pro and TradingView. The currency's proponents seemed trapped within a restrained trading spectrum that's been enduring for more than seven days amid concerns over inflows into spot Bitcoin exchange-traded funds (ETFs).
The latter witnessed a stark deceleration in recent times, with an exceptional dip on February 21 that recorded a net outflow of approximately $36 million. This information got disclosed on X (formerly Twitter) via sources including BitMEX Research.
A rejuvenated activity got observed on February 22 — net inflows of little above a quarter million dollars, despite outflows from Grayscale Bitcoin Trust (GBTC). Reporting on this resurgence in Bitcoin ETFs, James Van Straten from CryptoSlate commented, "Normality resumed with a $251M inflow".
Commenting on the purchasing pace from Bitcoin ETF operators, Thomas Fahrer of Apollo postulated a future shift in Bitcoin supply dynamics by BlackRock’s iShares Bitcoin ETF (IBIT), one of the largest operators. As of February 23, data collected by Apollo indicated that IBIT held 124,535 BTC, worth around $6.35 billion.
Popular trader Skew offered an analysis of the BTC price trend on lower-timeframes. The verdict suggested that the uptrend was still intact, although significant support levels were beginning to reappear. The 88-period and 100-period exponential moving averages served as these significant parameters on the 4-hour chart at $50,017 and $49,654. The 18-period EMA on the daily chart was documented at $49,645. Skew theorized these figures as a near-term trend inflection point that might initiate a surge in momentum.
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Published At
2/23/2024 12:09:10 PM
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