Unstoppable Bitcoin? 742 million dollars among ETF flows, growing 10%
The price of Bitcoin (BTC) increased by about 10%. This increase bucked the trend of net outflows from US-listed Bitcoin Exchange-Traded Funds (ETFs).
These funds saw significant spending this week of nearly $742 million. A massive $261.5 million inflow occurred on March 20 alone.
Why is the Bitcoin Bull Cycle Far From Ending?
Farside investors provided data showing the difference between inflows and outflows in the sector. The Greyscale Bitcoin Trust (GBTC) and the Invesco Galaxy Bitcoin ETF (BTCO) experienced significant losses, with $386.6 million and $10.2 million out, respectively.
As a result, modest inflows into other authorized funds have not made any difference to the overall outflow pattern.
Read more: How to trade Bitcoin ETF: A step-by-step approach
Despite these high capital costs, Bitcoin's market performance has been remarkably resilient. After dipping to $60,775 on Wednesday, BTC rose again to $68,100. It was later adjusted to $66,640 early Thursday.
This recovery occurred as Federal Reserve Chairman Jerome Powell expressed an ambivalent stance. Additionally, the Fed maintained its forecast for three rate cuts this year as inflation continues to rise.
ETF market volatility compared to Bitcoin's price rise illuminates the complex relationship between institutional movements and cryptocurrency speculation. While ETF inflows can usually indicate bearish sentiment, Bitcoin's strong demand suggests a different story, demonstrating its ability to withstand negative institutional pressures.
In addition, CryptoQuant analysts presented a long-term outlook, indicating that Bitcoin's bull cycle is far from over. According to the company's data, the current investment flow of short-term holders accounts for 48% of the total bitcoin investment. Historically, the end of a bull cycle sees this figure at 84-92 percent.
Additionally, valuation metrics such as the CryptoQuant P&L Index remain outside the typical market high zone, maintaining a position above the 1-year moving average.
Read more: Bitcoin price prediction for 2024/2025/2030
This indicates that despite market volatility and ETF outflows, Bitcoin's valuation is not in the range that typically indicates an imminent market crash.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
