Bitcoin ETF is one of the most impactful catalysts that is predicted to push Bitcoin’s price upward in the next couple of months.
This is because the Bitcoin ETF is a way to increase liquidity in the market through institutional investors, which typically have more money than retail investors.
While this was true during the launch in the US, the catalyst might not keep up with the market movement if the volume of the ETF itself is low.
Currently, institutional investors are not looking to be confident as the money flow of Bitcoin ETFs becomes negative, creating a negative sentiment to push Bitcoin downward.
Analyzing Bitcoin ETF’s Flow
Data from lookonchain suggest that on the first day of trading in May 2024, most of the issuers of these Bitcoin ETFs predominantly saw an outflow of money with little buying volume.
Bitcoin ETF Flow Recap / Source: Lookonchain
Four Bitcoin ETFs saw zero flow of funds to its ETFs with the buying and selling volume being equal, creating a 0 flow of funds.
Four Bitcoin ETFs saw an outflow of funds of around 400 BTC to 600 BTC, totaling 2,010 BTC which equates to around $115,97 Million of money going out from those four issuers.
There is one issuer that saw 60 BTC of inflow during yesterday’s session, which came from ARK 21Shares Bitcoin ETF.
However, counting the last seven days of trading, most of these ETFs printed an outflow of more than hundreds even thousands of BTCs.
One ETF received 58 BTC in the last seven days, recorded as the only ETF to print a positive inflow of funds.
This ETF is the Fraklin Bitcoin ETF, which is one of the lesser-known ETFs among others in the Bitcoin ETF Market.
The total outflow on May 1st, 2024, totals around 1,950 BTC equalling $112.5 Million of money going out from the ETFs in just one day.
In the last week alone, the total of Bitcoin flowing out of these ETFs totals to around 6,969 BTC equalling around $576.45 Million of funds going out.
Bitcoin Analysis
This flow of money shows that institutional investors are not confident with the current market conditions as the US economic factor seems to still play a role.
The market is currently affected by the interest rate decision of the US Central Bank, or the Fed, which sets the interest rate the same as last month, without any cuts or hikes.
This decision has prompted fears among investors as the possibility of a recession might still be prominent.
If the US economy falls into a recession, then the buying power of the US investors might fall significantly. Since most of the crypto’s trading volume comes from the US, this will be a big problem, which is why the price of Bitcoin is currently trending down.
Bitcoin’s Daily Chart / Source: Tradingview
Bitcoin’s price movement is still negative, with its RSI Indicator reaching the oversold zone, which might introduce another correction this month.
The current target for most traders seems to stand around the $50,000 mark and the $48,000 mark, where most are predicting that the correction will happen in May 2024.
The current price trend is also supported by retail traders, where the Open Interest on the futures market is seen as stagnant.
All of these combined lead to a negative condition for Bitcoin, so for traders, the best thing to do right now is to wait and see or open a short position.
Investors can utilize this by buying Bitcoin at a discount so that they can utilize the predicted bull market to gain more profit in the next bull market.
All of these strategies can be done through Bitrue, but it is good to remember that proper risk management needs to still be involved as the current market condition is highly volatile.
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