Traditionally, Bitcoin price and spot Bitcoin ETFs flow have a positive correlation. However, the recent movement in Bitcoin’s price shows a divergence in the current market. The drop in Bitcoin’s price to the $60,000 mark and the net inflow of spot Bitcoin ETFs for four consecutive days shows the contradiction, suggesting a complex interplay of market forces.
Assuming no other significant factors are at play, sluggish trading of spot Bitcoin ETFs could be the factor behind the drop in Bitcoin price.
US Spot Bitcoin ETFs Net Inflow Vs Net Outflow:
Despite the price dip, US spot Bitcoin experienced positive momentum for four consecutive days likely between June 25th and June 28th. However, per data from Farside Investors, the total weekly flow for these ETFs was negative $37.3 million, with a significant single-day outflow of $174.5 million.
On June 28th, the highest net inflow of the week was recorded, with contributions from BlackRock’s IBIT at $82.4 million and Ark 21share’s ARKB at $42.8 million. However, net outflow from Fidelity’s FBTC at $25 million and Grayscale’s GBTC at $27.2 million reduced the total inflow from $125.2 million to $73 million. Notably, BlackRock’s IBIT appears to be the only fund without outflows during the week, indicating investors’ trust in the issuer.
Weekly Performance and Investor Sentiment:
The week started with a net outflow of $174.5 million with GrayScale’s GBTC being the largest contributor at $90.4 million. However, the following four days recorded net inflows of $137.2 million. Despite a weekly net outflow of $37.3 million, the four consecutive days of net inflows for spot Bitcoin ETFs underscore the growing investors’ confidence and possible recovery.
Additionally, the contrast between the initial outflows and subsequent inflows indicates a market responsive to changing dynamics, with investors swiftly adapting to new opportunities.
As Bitcoin’s value oscillates, the performance of its exchange-traded funds (ETFs) serves as a crucial indicator of investor sentiment and market vitality. Currently, Bitcoin is trading at $60,880.86 with a drop of 0.07% over the past 24 hours. Data from CoinGlass reveals a decline in BTC Futures Open Interest at $30.97 billion during the same period.
Similarly, the market is now closely watching Bitcoin’s price movements, with analysts warning about a possible major sell-off. Renowned crypto market analyst Ali Martinez noted a potential liquidation of more than $22 million if Bitcoin falls to the $60,700 level. CoinGlass data shows that Bitcoin derivative accounts saw liquidations totaling $15.25 million, with $11.11 million from long positions and $4.14 million from short positions within 24 hours.
Also Read: VanEck’s First Spot Solana ETF Propels Solana Price
