Bitcoin (BTC) experienced a 3% decline on April 16 as investors in the cryptocurrency market became more risk-averse due to a lack of demand for exchange-traded funds (ETFs). Data from Cointelegraph Markets Pro and TradingView showed that BTC prices dropped to $61,709 on Binance shortly after the opening of the Wall Street market. Bitcoin followed the downward trend of U.S. stock indexes, as the U.S. dollar Index reached a six-month high of 106.17.
On April 15, data from Farside Investors revealed that there was a net outflow of $36.7 million from spot Bitcoin ETFs, indicating a stagnation in demand for these funds. Ki Young Ju, the founder and CEO of CryptoQuant, commented on this trend, stating that Bitcoin ETF demand has remained stagnant for four weeks.
Farside Investors data further showed that only Grayscale and BlackRock had inflows into their Bitcoin ETFs on April 12 and April 15, while all other funds recorded no flows. CryptoQuant’s latest report also indicated a slowdown in demand growth for Bitcoin from ETFs in the United States.
Despite the decline in BTC price, Bitcoin whales have been holding onto their coins, as revealed in a previous report by Cointelegraph. This observation aligns with Ki Young Ju’s findings, which show an increase in accumulation despite the decrease in spot Bitcoin flows.
The news of spot Bitcoin ETF approval in Hong Kong did not have a significant impact on boosting BTC price before the halving event. Michael Gu, the founder of Boxmining, stated that Hong Kong spot Bitcoin ETFs serve as a testing ground for Chinese investment.
In analyzing the current market structure, Tom Dunleavy, a crypto analyst and partner at MV Capital, noted that long-term holders currently account for over 40% of the realized value, which is significantly higher than the historical average of 10% seen at previous BTC price peaks.
Position trader Bob Loukas remains optimistic but expects a consolidation period for BTC price over the next two months before a convincing surge into price discovery.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and assess the risks involved before making any investment or trading decisions.