CryptoQuant CEO Ki Young Ju has made a bold prediction about the spot Bitcoin exchange-traded fund (ETF) market, stating that it could experience a resurgence if the price of BTC continues to decline. Young Ju, in a recent post on X, explained that the netflows of spot Bitcoin ETFs could increase despite the ongoing BTC price drop. Analyzing historical net flow trends, the CEO observed that demand for Bitcoin ETFs tends to rise when the cryptocurrency reaches specific support levels.
BitMEX Research’s data reveals that spot BTC ETFs have been experiencing negative net flows over the past four trading sessions. This can be attributed to outflows from the Grayscale Bitcoin Trust ETF and reduced inflows to other BTC ETFs.
Young Ju highlighted the fact that new BTC whales, particularly ETF buyers, have an on-chain cost basis of approximately $56,000. If Bitcoin’s price falls to this level, he expects significant inflows to resume in the ETFs.
Cointelegraph Markets Pro data shows that BTC’s price has been fluctuating between $62,000 and $68,000 in the past week. Young Ju believes that there is a possibility of further price decline, as corrections typically result in a maximum drop of around 30%. This means that Bitcoin could potentially drop to about $51,000 from its recent all-time high of $73,750.
The recent correction in Bitcoin’s price was caused by overheated market conditions, referred to by analysts as a “pre-halving retrace” ahead of the Bitcoin halving event scheduled for April.
CryptoQuant’s recent report suggests that the Bitcoin bull cycle is still far from over, as investment flows from new investors remain relatively low and price valuation metrics are still below levels seen in previous market tops.
Furthermore, the upcoming Bitcoin halving event has historically had a significant impact on the BTC price, often leading to a parabolic uptrend.
In related news, the CEO of Trezor, a leading cryptocurrency hardware wallet provider, warned that Bitcoin ETFs could make Coinbase a target for hackers and governments. The increased attention and potential vulnerabilities associated with ETFs could pose a threat to the security and privacy of Coinbase users.