Bitcoin ETF Demand May Rise as Prices Fall, Analysts Suggests

Bitcoin ETF market has seen a downturn due to Bitcoin’s price decrease, but Ki Young Ju, CEO at CryptoQuant, anticipates a possible rebound.

The spot Bitcoin ETF market has been gloomy as of late due to the decrease in the price of Bitcoin. Ki Young Ju, a famous analyst and CEO at CryptoQuant, has projected that the spot Bitcoin ETF market may experience a possible rebound.

Bitcoin ETF Net Flows Decreases

However, net flows have been consistently decreasing without explanation. Ki Young Ju revealed this information in a post on X on March 22. He stated that spot Bitcoin ETF netflows could increase even if the price of Bitcoin continues to fall.

The analyst observed, using historical NetFlow trends, that demand for Bitcoin exchange-traded funds (ETFs) typically increases when the cryptocurrency reaches specific support levels.

For the past four trading sessions, these Bitcoin exchange-traded funds (ETFs) have exhibited a negative flow, as indicated by the data provided by the analytics firm BitMEX Research.

This circumstance has been characterized by substantial levels of outflows from Grayscale’s GBTC and record low inflows for the other exchange-traded funds (ETFs), primarily the market leaders among them, which are BlackRock’s IBIT and Fidelity’s FBTC.

A new Bitcoin whale, namely an exchange-traded fund (ETF) buyer, has an on-chain cost basis of approximately $56,000, according to Young Ju.

This suggests that big Bitcoin holders, particularly investors in exchange-traded funds (ETFs), often acquired Bitcoin for $5,000. The Bitcoin quantitative expert forecasts enormous inflows into the spot Bitcoin ETF market if Bitcoin reaches the specified price level.

This aligns with the observed pattern. Statistics from Markets Pro show that the price of Bitcoin has fluctuated between $62,000 and $68,000 over the past week.

However, Young Ju suggests that such a reduction is feasible, considering that corrections typically see a maximum drop of 30% during the corrective process.

The analyst believes that the price of Bitcoin could go as low as $51,000 although it recently reached its highest point of $73,750. Nevertheless, Bitcoin’s price has reduced by 13% for the last 48 hours, falling from its new all-time high of $73,835 to trade at $60,000 briefly.

Overheated market circumstances, which the analysts have referred to as a “pre-halving retrace” before the Bitcoin halving event scheduled approximately 30 days from now, caused the correction.

Given the relatively modest level of investment flows from new investors and price valuation criteria that are still below levels seen in previous market tops, a report by CryptoQuant indicates that the bull cycle for Bitcoin has not yet ended.

In the meantime, the forthcoming Bitcoin halving event is a significant driver that is anticipated to bolster the price of BTC, ushering in an exponential rise.

As indicated by the halving countdown on CoinMarketCap, the next halving event for Bitcoin will occur in fewer than 31 days.