Bitcoin Pullback, ETF Outflows Signal Market Jitters Pre-CPI
Bitcoin (BTC) has returned to $68,000 after hovering around $70,000 for several days. BTC is currently trading at $69,100, indicating a recent decline.
The decline coincided with two consecutive days of negative inflows for US-traded Bitcoin exchange-traded funds (ETFs).
Spot Bitcoin ETFs saw $242.4 million in spending in two days
According to Farside data, US spot Bitcoin ETFs experienced a total outflow of $223.8 million on April 8, 2024, followed by $18.6 million on April 9, 2024.
Grayscale Bitcoin Trust (GBTC) remains the main driver of these flows, totaling $458.2 million in two days.
Read more: How to trade Bitcoin ETF: A step-by-step approach
Macroeconomic factors may be contributing to this trend. Today's US Consumer Price Index (CPI) data for March 2024 is highly anticipated.
The median estimate for year-over-year CPI is 3.4%, marking the largest annual increase since December 2023. February 2024 shows a 3.2% year-over-year CPI increase, beating the median estimate of 3.1%.
Considering these developments, it is plausible that the crypto market remains in a “wait and see” mode. Investors may be expecting more action based on economic indicators.
Meanwhile, news from Asian markets gives Bitcoin a bit of a bearish vibe. According to Tencent News, Hong Kong plans to announce its first four spot Bitcoin ETFs on April 15. The Hong Kong Stock Exchange is preparing to release in about two weeks.
However, the Securities and Futures Commission (SFC), a regulatory body in Hong Kong, could not officially confirm the news.
Despite this positive development, the Hong Kong ETF news did not have a significant impact on the Bitcoin price in the short term. However, the launch of Bitcoin ETFs in Hong Kong may be a long-term trigger, driving increased interest in Bitcoin.
BeinCrypto previously reported on CryptoQuant analysts that post-halving price rallies, particularly from whales, are due to growing demand for Bitcoin. Additionally, long-term holders' demand for Bitcoin outstrips new production for the first time in history.
Read more: Bitcoin Half Countdown
“Demand growth from large holdings, or whales, has historically increased in previous cycles, leading to price increases. Currently, demand growth is close to a peak of around 11% per month,” a CryptoQuant analyst told BeCrypto.
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