Jun 25, 2024 at 12:13Contents
Over the past two weeks, U.S. spot Bitcoin exchange-traded funds (ETFs) have experienced significant outflows totaling $1.3 billion, coinciding with a decline in Bitcoin’s price. According to Farside Investors, these outflows were led by Grayscale, which saw $517.3 million in withdrawals during this period.
BlackRock’s ETF Shows Positive Inflows
In contrast to the broader trend, BlackRock’s Bitcoin ETF recorded positive inflows, attracting $43.1 million over the same timeframe. Meanwhile, Bitcoin’s price dropped 11.6%, from $69,476 on June 10 to $61,359, according to TradingView data.
Historical Outflows
The recent outflows are the largest since April, when Bitcoin ETFs saw net withdrawals of over $1.2 billion between April 24 and early May.
Market Sentiment and Predictions
Jonathan de Wet, Chief Investment Officer at digital asset trading firm ZeroCap, told Cointelegraph that while the overall crypto market continues to decline, he expects Bitcoin to reach its key support level around $57,000 in the coming weeks due to anticipated Mt. Gox creditor repayments.
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BTC and ETH are holding up surprisingly well considering the broader market conditions, with key support levels at 63,000 and 3,400 respectively,” de Wet noted.
Downward Pressure Concerns
Several market analysts are worried about additional downward pressure on Bitcoin, partly due to the upcoming Mt. Gox creditor repayments and Bitcoin sales by the German government. Despite this, de Wet maintains a positive long-term outlook, expecting a constructive trend medium to long-term, especially with the anticipated launch of the ETH ETF and potential easing of market bias by the end of 2024.
Bitcoin’s Resilience
eToro market analyst Farhan Badami shared a more optimistic view, suggesting that Bitcoin often prices in major market events in advance. He believes Bitcoin’s price will stabilize and possibly hit new all-time highs in the coming months, anticipating a price range of $60,000 to $70,000 in the near term.
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