Beyond Bitcoin ETFs: ‘There Are Other Players Controlling This Market’ – Says Analyst
2024年3月22日 - 11:00AM
NEWSBTC
Recent observations by Eric Balchunas, a senior ETF analyst at
Bloomberg, suggest that the movements in Bitcoin’s price are
influenced by factors beyond just the flows of spot Bitcoin
Exchange Traded Funds (ETFs). According to Balchunas, who shared
his insights on X, “bigger forces at work” shape the largest
cryptocurrency’s valuation. This indicates that the correlation
between spot ETF flows and Bitcoin’s price action is less direct
than some assume. Related Reading: Bitcoin Supply On Exchanges Hit
4-Year Low, But Why Is Price Crashing? The ETF Influence And Market
Movements This analysis emerges amid a period of significant
financial activity for Grayscale, which has seen substantial
outflows, described by Balchunas as experiencing a “second wind” of
departures. Yesterday, Grayscale reported outflows of $281.57
million, marking a notable decrease in its Bitcoin holdings by more
than 40% since the inception of spot Bitcoin ETFs on January 11.
This scenario highlights a broader narrative within the
cryptocurrency investment sphere, where the relationship between
ETF activities and Bitcoin’s market performance is complex and
multifaceted. Interesting is price of bitcoin still went up
yesterday and yet it went down second half of last week when Ten
saw net inflows = there are other players controlling this market.
ETFs def a factor but bigger forces at work here. — Eric Balchunas
(@EricBalchunas) March 21, 2024 Despite the record outflows from
Grayscale’s GBTC, Bitcoin’s market behavior has shown resilience.
The cryptocurrency recently exceeded the $67,000 mark before
experiencing a slight retracement, currently trading at a price of
$66,106. This movement coincides with comments from Federal Reserve
Chair Jerome Powell, which seemingly spurred a rally across various
risk assets, including cryptocurrencies. Powell’s reassurances
regarding the outlook on rate cuts prompted a slight recovery in
Bitcoin’s price, demonstrating how external economic factors and
sentiments can impact cryptocurrency markets. It is worth noting
that Bitcoin traded below $65,000 before the announcement. On-Chain
Insights And Bitcoin Future Prospects Further deepening the
analysis, Charles Edwards, a crypto analyst, recently suggested
that pullbacks are common in Bitcoin’s bull runs, with corrections
of around 30% within the realm of possibility. A normal Bitcoin
bullrun pullback is 30%. Back in December, we were already in the
longest winning streak in Bitcoin’s history. A 20% pullback here
takes us to $59K. A 30% pullback would be $51K. These are all
levels we should be comfortable expecting as possibilities. —
Charles Edwards (@caprioleio) March 19, 2024 In related news, data
from the on-chain analysis platform CryptoQuant has recently
indicated a nearly 40% reduction in Bitcoin’s supply on exchanges
over the past four years. This trend points towards a bullish
sentiment within the Bitcoin ecosystem, suggesting that investors
are inclined to hold onto their assets in anticipation of future
value increases. Moreover, CryptoQuant’s data reveals that
Bitcoin’s demand has consistently outstripped its supply since
2020, a trend that supports the asset’s value on the premise that
scarcity enhances perceived value. Related Reading: Hold Your
Horses: ‘Buying The Crypto Dip Is Still Too Early’ Warns Top
Analyst — Here’s Why This dynamic is expected to intensify
following the upcoming Bitcoin halving event, which will reduce the
miners’ supply by half, potentially leading to further increases in
Bitcoin’s price. Featured image from Unsplash, Chart from
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