In the midst of Bitcoin’s price decline, the spot Bitcoin ETF market has been experiencing a period of gloom. However, Ki Young Ju, a well-known analyst and CEO at CryptoQuant, has made a prediction that there could be a potential resurgence in the spot Bitcoin ETF market.
In a post on X on March 22, Ki Young Ju shared his belief that spot Bitcoin ETF netflows could increase even as the BTC price continues to decline. Drawing from historical netflow trends, the analyst observed that demand for Bitcoin ETFs tends to rise when the cryptocurrency reaches certain support levels.
Data from analytics firm BitMEX Research reveals that these BTC ETFs have witnessed negative flows in the past four trading sessions. This has been accompanied by significant outflows from Grayscale’s GBTC and record-low inflows for other ETFs, particularly market leaders like BlackRock’s IBIT and Fidelity’s FBTC.
Ki Young Ju pointed out that new BTC whales, especially ETF buyers, have an on-chain cost basis of around $56,000. This suggests that significant Bitcoin holders, particularly ETF investors, typically acquired Bitcoin at an average price of $56,000.
Based on this trend, the cryptocurrency quantitative expert expects substantial inflows into the spot Bitcoin ETF market if BTC reaches the mentioned price threshold.
According to data from Cointelegraph Markets Pro, Bitcoin’s price has fluctuated between $62,000 and $68,000 over the past week. However, Young Ju believes that a decline is possible, as corrections usually see a maximum drop of 30%. With BTC recently peaking at $73,750, the analyst forecasts that the asset’s price could potentially drop as low as $51,000.
In the past 48 hours, BTC’s price has dropped by 13% from its new all-time high of $73,835, briefly trading near $60,000. This correction was triggered by overheated market conditions, which analysts have dubbed a “pre-halving retrace” ahead of the Bitcoin halving event that is approximately 30 days away.
A report by CryptoQuant indicates that the Bitcoin bull cycle is not yet over, as there is a relatively low level of investment flows from new investors and price valuation metrics are still below levels seen in previous market tops.
Meanwhile, the upcoming Bitcoin halving event is expected to be a significant driver that will boost BTC’s price and usher in a parabolic uptrend. According to CoinMarketCap’s halving countdown, Bitcoin’s next halving event is less than 31 days away.
In a related development, the CEO of Trezor, a leading cryptocurrency wallet provider, has warned that Bitcoin ETFs make Coinbase an attractive target for hackers and governments due to the high level of funds stored on the platform.