CryptoQuant CEO Forecasts Rebound in Spot Bitcoin ETF Market Amid Price Drop and Halving Event
Summary:
Despite Bitcoin's recent price decline and subsequent impact on the spot Bitcoin ETF market, CryptoQuant CEO Ki Young Ju predicts a potential rebound. Based on historical netflow patterns, he suggests that increased interest in Bitcoin ETFs can occur when Bitcoin reaches certain support levels. The analyst observes that significant Bitcoin investors have an average purchasing price around $56,000 and predicts an inflow to the spot Bitcoin ETF market when this price level is achieved again. Although Bitcoin’s prices have recently dropped, the upcoming Bitcoin halving event, happening in less than 31 days, is expected to enhance Bitcoin's value.
The recent downturn in Bitcoin’s value has cast a shadow over the spot Bitcoin ETF market. However, Ki Young Ju, renowned analyst and CEO of CryptoQuant, forecasts a potential rebound in this troubled segment. Ki Young Ju, on March 22, highlighted that even amidst the dipping bitcoin prices, spot Bitcoin ETF netflows could witness a surge. This prediction is based on historical netflow patterns that show a rising interest in Bitcoin ETFs whenever the virtual currency hits specific support levels. Per data by analytics agency, BitMEX Research, Bitcoin ETFs have registered a negative flow for the past four business days. This downturn is significantly influenced by high outflows from Grayscale’s GBTC and a historic low inflow for other ETFs, chiefly market forerunners such as BlackRock's IBIT and Fidelity's FBTC.
Young Ju's analysis shows that new Bitcoin whales, particularly ETF purchasers, generally hold an on-chain cost basis at approximately $56,000. Thus, these significant Bitcoin investors usually procure Bitcoin at an average pricing of $56,000. Based on this trend, the digital currency quantitative expert predicts considerable inflows towards the spot Bitcoin ETF market once BTC reaches the aforementioned cost criterion.
Data from Cointelegraph Markets Pro exhibits that Bitcoin's (BTC) value oscillated between $62,000 and $68,000 in the previous week. Young Ju hints that such a downfall is feasible as corrections generally bring along a maximum fall of 30%. Given BTC’s newest peak at $73,750, the analyst anticipates that the asset could depreciate to as low as $51,000.
In the last 48 hours, BTC's worth has seen a 13% plunge from its recent record high of $73,835 to momentarily huddle near $60,000. Analysts have attributed this correction to a pre-halving retrace, triggered by saturated market settings. This happened before the upcoming Bitcoin halving event, scheduled around 30 days from now. However, a study released by CryptoQuant argues that Bitcoin's bull cycle is not over yet, considering the relatively subdued level of investment inflows from newcomer investors and the current below-par price valuation metrics.
The fast-approaching Bitcoin halving event has been identified as a crucial factor likely to enhance BTC's value, initiating a steep upward trend. CoinMarketCap’s halving countdown reveals Bitcoin's next halving event is less than 31 days away.
Published At
3/23/2024 3:10:25 PM
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