2 months ago
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The recent negative trend cited around the Spot Bitcoin Exchange-Traded Funds (ETFs) has caused quite a frenzy in the industry as discussions about its trigger and potential impact on BTC arise. As a result, a market expert has delved into the subject, providing insights about the pessimistic development of the products and price effects.
Spot Bitcoin ETF Outflows “Are No New Thing”
In an insightful perspective, Dean Crypto Trades, a well-known expert and investor has addressed the consistent pattern of outflows from the spot Bitcoin ETFs, attracting the negative trend to the recent fluctuations of Bitcoin prices. Dean Crypto Trades stressed that this trend is indicative of the ambiguity in the cryptocurrency market, where regular price fluctuations have made investors, both institutional and retail more risk cautious.
Taking to the X (formerly Twitter) platform, the market expert claims that the current persistent withdrawals from the products are “no new thing.” He further drew attention to previous outflows that were seen in the early days following the funds’ launch in January this year.
According to the expert, there have been multiple $500 Million and above outflow streaks since the products began trading. Meanwhile, BTC has always recovered strongly since the price has been fluctuating between the $50,000 and $70,000 level.
By observing past trends, Dean noted that the spot BTC ETF withdrawals primarily follow BTC’s price performance, not the reverse. Dean’s perspective implies that the products tend to witness negative sentiment during periods of heightened price decline and a positive sentiment during price growth.
The expert’s prognosis is evidenced by the last trading day of last week, in which the products saw an outflow worth millions of dollars. At the same time, the price of BTC experienced a downward move, falling from the $56,800 level to $52,850.
Farside Investors, a London-based investment management firm, reported that the funds suffered a loss of over $170 million after the market closed on Friday. Funds from Fidelity, Bitwise, Grayscale, Ark Invest, and Valkyrie recorded significant outflows of $85 million, $14 million, $52 million, $7.2 million, and $4.6 million, respectively. Meanwhile, other asset management company funds had no inflows.
BTC Whales Continues Accumulation
Bitcoin whales are on the move once again, with nearly 2,900 BTC moved in the past few days. Despite the recent price decline, Lookonchain, an on-chain data tracker, reported that BTC whales have been accumulating the crypto asset since September 1 and 3.
During the period, data from the tracker shows that the whales have purchased 2,814 BTC, valued at $157.3 million at an average price of $55,887 from Binance, the world’s largest cryptocurrency exchange.
It is worth noting that the stash of BTC was being moved by three distinct unknown wallet addresses identified as “bc1qg32kay34,” “bc1qd565,” and “36LMbBpvUHN.” This accumulation could spark renewed optimism toward Bitcoin’s potential since whale movements are often considered a bullish signal for a digital asset.
Featured image from Unsplash, chart from Tradingview.com
