- More than $200 million was drained from the BTC Spot ETF.
- The majority of exchange net flows were positive flows.
Spot Bitcoin Approved [BTC] US ETFs continue to see large flows into Bitcoin. ETF flows have reached their peak this month as BTC prices look poised to return to all-time highs.
Outflows dominate Bitcoin Spot ETF volume
Analysis of Coinglass' Bitcoin Spot ETF Netflow reveals that April 8th witnessed the highest flows since March 27th. However, this trend marked a departure from the trend observed in recent days.
Source: Coin Glass
The chart shows a significant spill on April 8th, the first of its kind since March 20th. According to the data, BTC worth $223 million was leaked on April 8th.
Interestingly, the last time such a large outflow occurred, the price of Bitcoin was falling. In contrast to previous cases, this outflow occurred while Bitcoin was on the rise and above $71,000.
Transaction inflow to Bitcoin increases
While Bitcoin spot ETFs experienced significant outflows amid rising prices, general BTC net inflows showed the opposite trend on April 8th. Analysis of netflows showed that inflows were predominant, suggesting that more traders were parking their holdings on exchanges.
Source: CryptoQuant
However, it is noteworthy that despite the predominance of inflows, their volumes were not particularly significant. The total inflow recorded was approximately 555 BTC. As of now, the inflow amount has increased to over 1,300 BTC.
Although the Bitcoin Spot ETF and Exchange Netflow indicators appear to be moving in opposite directions, the underlying reactions are similar.
The surge in spot ETF outflows suggests that shareholders are selling, potentially motivated by a variety of factors, including profit taking. Similarly, the spread of inflows to foreign exchange net flows suggests that holders are also selling to secure profits.
In both scenarios, the driving force is the rise in BTC price, a common factor influencing these actions.
BTC price rise takes a break
On April 8th, the price of Bitcoin increased by approximately 1.73%, reaching approximately $71,313. Although this was not Bitcoin's highest price, analysis showed that it marked the third highest price in Bitcoin's history.
Read Bitcoin (BTC) price prediction for 2024-25
However, as of this writing, prices have fallen. BTC was trading around $70,400, reflecting a decline of over 1%.
Although this decline represents a pullback from the previous day’s gains, BTC still remained within the bullish trend.
Source: TradingView
