Bitcoin is closing out the week on a rather bearish note After a major crash early on Friday morning. After the crash, the price fell below $66,000. The rest of the cryptocurrency market followed suit. The reason for this crash could be traced back to what started the bull run in the first place – Spot Bitcoin ETFs.
Spot Bitcoin ETF Net Flows Suffer
This week, after what appeared to be a strong period of only positive flows for the Spot bitcoin ETFs in all areas, it appears that institutions are scaling back their purchasing. Spot On Chain’s data-aggregation platform revealed that the net flow into these ETFs has dropped dramatically over the past few days.
It was on March 3 that the decline in daily net flows of $38 per day became apparent. Intriguingly, the daily net inflows for Spot had been at their second highest on Wednesday. BTC ETFs. ETFs.
The trend continued Thursday, as the net inflows to Spot-ETFs saw another major crash. The net inflows into the Spot ETFs registered another massive crash on Thursday, March 14. This time, they fell 80.6% from their previous day which saw a decline of 38%. ETFs experienced their worst trading session in more than one week.
🚨 BTC #ETF Net inflow for Mar 13 2024 is +$684M
• The net inflow dropped by 38.3% compared to the previous day but remains the second-largest inflow per day since ETF inception.
• The cumulative total net inflow after 43 trading days is $11.82B.
• BlackRock ($IBIT) now holds… https://t.co/hziFc5Uy4v pic.twitter.com/DGsnfVecZF
— Spot On Chain (@spotonchain) March 14, 2024
The ETFs still see positive inflows, which indicates that the outflows have continued to be smaller than inflows. But if outflows keep increasing, it will be a problem. Bitcoin could suffer This could have a huge impact on the markets. An example is the crash in the market caused by the Grayscale Bitcoin Trust withdrawals.
BTC Struggles to Recover Price
The price of the car dropped to $65600. After dropping to $65,600. Bitcoin price The market is still recovering from the recent flash crash. The dip was quickly bought up, which indicates a lot. demand for BTC Low prices. The price was raised by this demand, and it has now been rejected for $68,700.
BTC is currently trading around the $66,500 mark, and the $68,000 price level has proven to be a significant one. next Significant resistance to the price. Even if crypto were to be able to surpass this level, the $68,700 level would still pose a significant resistance.
There has been a crash Bitcoin’s price decline In the past day alone, its market cap has dropped by over 8%. It is now at $1.33 Billion. Altcoins have also suffered from this crash, as Ethereum, Dogecoin, Cardano, etc., all saw an average drop of 10%.
BTC price is $67,700| Source: BTCUSD on Tradingview.com
Chart from Tradingview.com, image courtesy of Forkast News
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