Spot Bitcoin ETFs have been experiencing outflows for seven consecutive days, totaling around $1.2 billion. This trend is concerning as it may be linked to institutional and miner sell-offs, coinciding with the decline in the Bitcoin price.
Looking back at historical data, we see a similar trend in April-May 2024 when Spot Bitcoin ETFs bled for seven days, with the largest single-day outflow of $563.7 million. However, after this period, there was a turnaround with inflows for two days before a significant 19-day streak of inflows, setting a new record.
The current Bitcoin price is still above its 200-day moving average, indicating long-term bullish sentiment. However, on shorter timeframes, it has fallen below its 50-day and 100-day moving averages. Despite this, there are signs of upside on the daily chart, with a 35% increase in trading volume and a recovery above the $61,000 resistance level.
Considering these historical insights and current market conditions, there is a possibility of a turnaround in Spot Bitcoin ETFs, especially with the recovery in the Bitcoin price. If the previous trend repeats itself, we could see significant inflows driving prices as demand grows.
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In conclusion, the current outflows in Spot Bitcoin ETFs may be a precursor to a potential turnaround, based on historical trends and market indicators. With Scott Matherson’s expertise and insights, readers can gain a deeper understanding of the dynamics at play in the crypto market and make informed investment decisions. Remember to conduct your own research before making any investment choices, as investing always carries inherent risks.
