Bitcoin Trader Warns About Local BTC Price After $530M ETF Earnings
However, with institutional buying on the rise, Bitcoin risks a lot of “profit taking” and price weakness.
In a recent analysis on X on July 23, popular trader Skew warned of the “headline curse” as US Bitcoin (BTC) exchange-traded funds (ETFs) took more than $500 million.
ETF inflows are not enough to drive up the BTC price.
Bitcoin ETF popularity is enjoying a revival this week, but the good times are far from guaranteed to last, Skew said.
The largest U.S. spot ETF — BlackRock's iShares Bitcoin Trust (IBIT) — saw $526 million in inflows on June 22 alone, warning that such big inflow days have historically preceded BTC price selloffs.
“This is a surprise to each other as IBIT reports a record 9 days of fig flow across market supply zones,” he concluded.
Net inflows totaled 533.6 million for US spot ETFs on July 23 – the highest since March, according to data from sources including UK-based Farside Investors.
BTC/USD reached an all-time high in March, which is still temporarily down 25% in the market.
“So the obvious part in terms of trading this right now is that the market is showing support for this demand and higher prices,” Skew continued.
They highlighted “consistent” demand for space, supply of occupiers and overall vendor attraction as key requirements to maintain current levels and grow further.
Bitcoin was trading at around $66,550, down 1.5% on the day, according to data from Cointelegraph Markets Pro and TradingView.
ETF price with hours to start ETF
Other concerns, meanwhile, put Ethereum ETFs in the spotlight.
Related: Bitcoin trader sees 2-month high as China cuts key rates
Spot Ether (ETH) ETFs, which were approved by US regulators to begin trading on July 23, have so far failed to generate the expected run on the market capitalization of the biggest altcoin.
Instead, ETH/USD is up just 1.5% in the past week and is flat on the day, showing a sharp divergence against Bitcoin in the days before its ETFs floated in mid-January.
“A lack of positive response is a negative response,” wrote trading firm QCP Capital in part of a recent announcement to Telegram channel subscribers.
It seems that the market will bend first to ‘sell the news'.
Cointelegraph reports that some believe it will take several months to gauge true demand for the Ether ETF.
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.
