(Bloomberg) — Bitcoin has fallen more than 10% from all-time highs as demand for emerging spot Bitcoin exchange-traded funds eases, putting the cryptocurrency on pace for its worst week since August.
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A group of 10 spot Bitcoin ETFs is on pace to post its biggest weekly outflow since the product debuted on January 11th. Meanwhile, the world's largest cryptocurrency is set to have one of its worst weeks of the year after falling around 6.5%. On Friday, the token fell 2.5% to $63,820.
“With BTC approaching 60,000 on the back of reduced ETF flows, liquidations, and expected Ether ETF delays, the market is desperate for positive catalysts to support the rally,” said Chris Newhouse, DeFi analyst at Cumberland Labs. I'm looking for it,'' he said.
JPMorgan Chase strategists warn that Bitcoin “still appears overbought” ahead of the long-awaited halving event in April, which will reduce the supply of newly minted Bitcoin from miners. He reiterated his call for further decline in February.
Continuing open interest in CME Bitcoin futures and declining ETF flows are significant bearish signals for Bitcoin prices, strategists led by Nikolaos Panigirtzoglou said in a note on Thursday.
“The pace of net inflows to Spot Bitcoin ETFs has slowed significantly, with significant outflows seen last week,” the strategists wrote. “This calls into question the notion that the Spot Bitcoin ETF flow diagram would be characterized as sustained unidirectional net inflows. With the positioning looking overbought, this profit-taking is likely to continue.”
Read more: How a spot Bitcoin ETF delivered big profits for Wall Street: QuickTake
Last month, the bank predicted that Bitcoin prices would decline towards $42,000 from April onwards as “the euphoria induced by the Bitcoin halving subsides.”
A net $836 million was withdrawn from the ETF between Monday and Thursday, a decline that stems from outflows from the Grayscale Bitcoin Trust and curbs on subscriptions to competing products such as BlackRock and Fidelity Investments. It reflects.
The fund has recorded $11.3 billion in net inflows to date, showing it remains one of the most successful debuts for the ETF category, according to data compiled by Bloomberg. $13.6 billion was lost from the Grayscale Bitcoin Trust, which was converted into an ETF.
“These inflows slowed last week, which could mean interest in BTC ETFs has plateaued, at least for the time being,” said Michael Safai, co-founder of quantitative trading firm Dexterity Capital. There is a gender,” he said.
Despite Bitcoin setting a record of around $73,798 on March 14, enthusiasm is waning among retail traders, according to Naeem Aslam, chief investment officer at Zaie Capital Markets. It is said that there is a possibility.
“The fact that the rally didn't really start from the all-time high like it used to made many question the strength of the rally,” Aslam said. “The halving is just around the corner, and if this event fails to maintain its momentum, we will face a severe retracement, which could mean the price could fall below $50,000.”
–With assistance from Jackie Edwards and David Pan.
(Updated Bitcoin price and ETF flows)
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