The recent trends in Bitcoin ETFs have shown a shift from inflows to outflows, with Grayscale’s GBTC recording a significant outflow of $39.53 million on the 10th of June. This has caused a total outflow for Bitcoin ETFs, which could potentially lead to a decline in the price of BTC. Despite earlier inflows totaling billions, the recent outflows suggest that long-term holders are cashing out, leading to a bearish sentiment for Bitcoin.
Bitcoin ETFs do not require investors to own Bitcoin directly, but instead provide exposure to the cryptocurrency based on its price movements. In the first quarter of 2024, assets in Bitcoin ETFs saw significant inflows, leading to a rally in the price of Bitcoin to new all-time highs. However, the recent outflows have caused Bitcoin’s price to dip below $60,000, with the possibility of further decline looming.
With the recent increase in outflows and a decrease in the total supply of Bitcoin in profit, the price of BTC may continue to drop. Currently trading at $67,539, Bitcoin could potentially slip below $67,000 if selling pressure persists. However, if a buy signal emerges, the price of Bitcoin could rebound towards $70,000 in the short term.
In addition to the BlackRock Bitcoin ETF and the supply in profit indicator, the Hodler Net Position Change is a crucial metric to consider. A negative reading of this indicator suggests that long-term holders are cashing out, which could further impact Bitcoin’s price. Glassnode’s data shows that Bitcoin’s Hodler Net Position Change was -107.211 BTC, indicating that HODLers have been booking profits, potentially leading to a bearish trend for Bitcoin.
Overall, the recent changes in Bitcoin ETFs and key metrics suggest a potential decline in the price of Bitcoin in the short term. However, market participants should monitor the signals closely, as a potential rebound towards $70,000 could occur if accumulation starts to outweigh profit-taking. Stay informed and keep an eye on the market trends to make informed decisions about your cryptocurrency portfolio.
Discussion about this post