2024-5-7 15:00 |
Bitcoin (BTC) has experienced a price slowdown, having recently recovered above $60,000. This tepid price movement is believed to be due to a couple of factors, including the reduced demand for the Spot Bitcoin ETFs.
Spot Bitcoin ETFs Have Lost Their SparkThe Spot Bitcoin ETFs recorded billions of dollars in net inflows in the first three months of launch. This contributed to the significant rally that Bitcoin recorded right around when the funds were approved, with the flagship crypto rising to a new all-time high (ATH) in March. However, demand for these funds has declined since the start of this month.
Research firm Kaiko also noted in its recent report that net inflows across all ETFs have steadily dropped for a while now. This has ultimately affected Bitcoin’s bullish momentum, with the flagship crypto trading sideways. Bitcoin’s price performance in the last 24 hours suggests that the recovery above $60,000 wasn’t necessarily a bullish reversal.
Andrey Stoychev, Head of Prime Brokerage at Nexo, had previously warned that Bitcoin was unlikely to experience any significant price surge without a catalyst. He added that the crypto token would likely continue to trade around the $67,000 price range. That means one can expect Bitcoin to keep bouncing off the support and resistance in the meantime.
The silver lining is that the demand in the Spot Bitcoin ETFs could pick up soon enough, with these funds likely to provide a much-needed boost to Bitcoin’s price when that happens. A trend reversal for these ETFs looks imminent, especially after Grayscale’s GBTC recorded its first day of net inflows on May 3.
Another Reason Why Bitcoin’s Price Is DownCrypto analyst Mikybull Crypto also recently predicted that Bitcoin could drop below to clear the CME (Chicago Mercantile Exchange) gap at around $62,580. This price gap exists because the CME’s Bitcoin futures market doesn’t run on weekends. The crypto analyst added that things could pick up once Bitcoin clears the CME gap.
The analyst also suggested that the worst may be behind, irrespective of whether Bitcoin continues to trade sideways, as he stated that the crypto token’s local bottom is in. However, Mikybull Crypto also predicts that Bitcoin will need to clear out the $67,000 price level and consolidate before it can move towards $73,000.
In anticipation of this price surge, now looks to be an excellent time to accumulate the flagship crypto as crypto analyst Ali Martinez mentioned that Bitcoin’s Market Value to Realized Value (MVRV) 90-day ratio indicates that it is still in a “prime buy zone.”
At the time of writing, Bitcoin is trading at around $63,400, down over 1% in the last 24 hours, according to data from CoinMarketCap.
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