Bitcoin price falls below $62k amid fluctuating BTC ETF demand
Bitcoin (BTC) prices fell 3 percent on April 16 as crypto investors entered a state of emergency that halted demand for ETFs.
Data from Cointelegraph Markets Pro and TradingView showed a price drop of domestic BTC on Binance to $61,709 shortly after the opening on Wall Street on April 16.
Bitcoin joined U.S. stock indexes in falling on the day as the U.S. dollar index hit a six-month high of 106.17.
On April 15, capital flows into Bitcoin exchange-traded funds (ETFs) with a net outflow of $36.7 million, according to Farside Investors.
CryptoQuant Ki Young Ju, founder and CEO, commented in part on BTC price on X: “Bitcoin ETF demand has stalled for 4 weeks.
Emphasizing Bitcoin ETFs, which have been slow to enter the space, data from Farside Investors shows that every other fund had zero outflows, with only Grayscale and BlackRock on Friday, April 12 and Monday, April 15.
CryptoQuant's latest report also shows a slowdown in demand for Bitcoin from ETFs in the US.
“EFF interest (blue line) is also down significantly from March highs.”
Meanwhile, an earlier report by Cointelegraph revealed that Bitcoin whales are holding on to their coins despite the recent drop in BTC prices.
Young Ju's observations confirm this, showing that stocks have increased despite the potential for Bitcoin outflows.
Excluding ETF settlement transactions, on-chain inventory remains very active.
Related: How Low Can Bitcoin Price Go? Analysis argues the ‘black swan phenomenon'
News of Bitcoin ETF approval in Hong Kong failed to trigger a pre-half rally in BTC price.
Boxing founder Michael Gu said HK spot Bitcoin ETFs “will serve as an experiment for Chinese money to enter the system.”
BTC price should strengthen before new all-time highs.
Analyzing the current structure of the Bitcoin market, crypto analyst and partner at MV Capital Tom Dunleavy said that the percentage of confirmed value for long-term holders is more than 40%, which is higher than the 10% reported at the historical peak of BTC.
“With several ongoing incentives (Halving, more ETF flows, BTC L2s) we think there is no reason to doubt a sustainable return in the near future. Full speed ahead to $150k in early 2025.”
While optimistic, spot trader Bob Lucas examined several indicators on the daily chart to question BTC's price consolidation over the next two months before finding a compelling price discovery.
CryptoQuant analysts added,
“Investors have reduced their exposure to BTC ahead of Bitcoin's halving this week (expected on April 20) and may expect the situation in the Middle East to worsen.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
