Bitcoin stalls at $70K as Spy, QQQ ETFs on post-capture exits
After a strong start to the week, Bitcoin (BTC) is down about 5% against the S&P 500, DOW, Nasdaq and Gold. On the other hand, crude oil rose by 7.30% and the US and Israel-Iran war in 2010
The common market's weakness underscores a shift in coordinated capital flows as the war continues in the Middle East, with increased outflows from the S&P 500 and Nasdaq 100 Exchange-Traded Funds (ETFs) underscoring traders' decision to reduce risk.
Capital migration takes place in all investment markets
Kobe Steel reported combined gains of $64 billion from the S&P 500 ( SPX ) ETF and Nasdaq 100 ETF ( QQQ ) over the past three months, the highest on record.
This reverses the $50 billion in outflows seen in November and pushes outflows to 5% of total assets under management.
Spot Bitcoin ETFs recorded $253 million in outflows over the past two days, reflecting broader market weakness.
While monthly ETF inflows remained positive at $1.48 billion, this contrasted against a backdrop of total outflows of $6.3 billion between November and February, indicating a weak recovery in investor interest.
Glassnode data suggests that the market is struggling to absorb the sales pressure. Profitability realized by the network briefly accelerated to $17 million per hour (24-hour average) before losing momentum, after which the price of BTC fell below $70,000. Added Glassnode
“Broader geopolitical uncertainty appears to be squeezing the depth of demand, limiting the market's ability to absorb even modest real-world events.”
Related: Market Analyst Sees Further Bitcoin Lows, Flag $60K As Key Level
War-influenced market cycles shape BTC price action.
Market participants are concerned about the current US-Israeli-Iranian war and the They are aligning Bitcoin's actions with past geopolitical events, drawing parallels between the war in Russia and Ukraine in 2022.
Coincidentally, crypto analyst Carlitosway, held four years apart in February 2018 Following Russia's attack on Ukraine on February 24, 2022, Bitcoin sold off before posting a 24% rally over the next four weeks. In the year The momentum soon faded as BTC fell another 64% in November 2022.
A similar sequence is being seen this month, BTC has rallied nearly 10% at one level since the beginning of the war last week, but the pace is now slowing down.
Carlitosway attributed the weakness to continued pressure on liquidity, rising energy costs and continued forced selling in times of stress, all of which will reduce continued demand for Bitcoin.
The pattern points to a prolonged stabilization phase, which may take time as the recovery builds capital and the selling pressure clears.
The crypto analyst believes that the end of Bitcoin's recovery path could happen after the low price around $55,000. The analyst added,
I think it will be difficult for the BTC dollar to increase until the Iran war is resolved. The environment is at risk, the SPX has lost trillions in capitalization, which leads me to a neutral position. “
Related: What Will Happen to Bitcoin If Oil Prices Reach $180 a Barrel?
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