Bitcoin (BTC) has recently seen a slowdown in its price movement, despite having recovered above $60,000. One of the main reasons for this tepid movement is believed to be the reduced demand for Spot Bitcoin ETFs. The Spot Bitcoin ETFs experienced a surge in net inflows in the first three months of their launch, which coincided with a significant rally in Bitcoin’s price. However, the demand for these funds has been declining since the beginning of the month, impacting Bitcoin’s bullish momentum.
Research firm Kaiko highlighted in a recent report that net inflows across all ETFs, including Bitcoin ETFs, have been steadily dropping. This decline in demand has led to Bitcoin trading sideways without any significant bullish reversal. Andrey Stoychev, Head of Prime Brokerage at Nexo, had previously warned that a catalyst was needed for Bitcoin to experience a substantial price surge, predicting that the cryptocurrency would likely continue to trade around the $67,000 price range.
Despite the current price stagnation, there is optimism that the demand for Spot Bitcoin ETFs could pick up soon. Once these funds see a trend reversal, they are expected to provide a much-needed boost to Bitcoin’s price. Grayscale’s GBTC recorded its first day of net inflows on May 3, indicating a possible turnaround for Bitcoin ETFs.
Crypto analyst Mikybull Crypto suggested that Bitcoin could drop below to clear the CME gap at around $62,580, a gap that exists due to the CME’s Bitcoin futures market not operating on weekends. The analyst also mentioned that once Bitcoin clears this gap, there could be an uptick in its price movement. Mikybull Crypto believes that Bitcoin’s local bottom is in, but the cryptocurrency will need to surpass the $67,000 level and consolidate before moving towards $73,000.
In anticipation of a potential price surge, now might be an excellent time to accumulate Bitcoin. Analyst Ali Martinez pointed out that Bitcoin’s Market Value to Realized Value (MVRV) 90-day ratio indicates that it is still in a “prime buy zone.” As of the time of writing, Bitcoin is trading around $63,400, down over 1% in the last 24 hours.
The current state of Bitcoin’s price movement reflects a combination of factors such as reduced demand for Spot Bitcoin ETFs, price predictions by analysts, and the potential for a price reversal in the near future. While the cryptocurrency may be experiencing a slowdown at the moment, there is hope for a resurgence in its price if the demand for ETFs picks up and Bitcoin clears key resistance levels. Investors are advised to conduct thorough research and consider the risks involved before making any investment decisions in the volatile cryptocurrency market.
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