- CryptoQuant CEO Ki Young Ju has made a prediction regarding the spot Bitcoin exchange-traded fund (ETF) market.
CryptoQuant CEO Ki Young Ju has made a prediction regarding the spot Bitcoin exchange-traded fund (ETF) market, stating that it could experience a rebound in demand if the price of BTC continues to decline.
#Bitcoin spot ETF netflows are slowing.
Demand may rebound if the $BTC price approaches critical support levels.
New whales, mainly ETF buyers, have a $56K on-chain cost basis. Corrections typically entail a max drawdown of around 30% in bull markets, with a max pain of $51K. pic.twitter.com/vZCG4F0Gh5
— Ki Young Ju (@ki_young_ju) March 22, 2024
Analyzing historical net flow trends, Young Ju observed that demand for Bitcoin ETFs tends to rise when the cryptocurrency reaches specific price levels.
See Also: Bitcoin and Ethereum See Gains As Halving Looms
However, BitMEX Research reveals that spot BTC ETFs have recently seen negative net flows, with outflows from the Grayscale Bitcoin Trust ETF and reduced inflows to other BTC ETFs over the past four trading sessions.
[1/4] Bitcoin ETF Flow – 21 Mar 2024
All data in. Another net outflow day, with $94m net outflow. Large GBTC outflows continue
Record low inflow for Fidelity, of $2.9m pic.twitter.com/QlQcGsWUWN
— BitMEX Research (@BitMEXResearch) March 22, 2024
The CEO highlighted that new BTC whales, particularly ETF buyers, have an on-chain cost basis of approximately $56,000. If Bitcoin’s price were to dip to this level, Young Ju anticipates significant inflows into the ETFs.
Young Ju suggests the possibility of a further dip in BTC, as corrections typically result in a drop of around 30%.
This could bring Bitcoin’s price to approximately $51,000 from its recent all-time high of $73,750.
The recent correction in Bitcoin’s price was attributed to overheated market conditions, described by analysts as retracement ahead of the upcoming Bitcoin halving event scheduled for April.
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