2024-04-26 13:04:20
- Bitcoin ETF flows have fallen sharply since the beginning of the week.
- The liquidity stock ratio increased, which means that supply can support demand for a long time.
bitcoins [BTC] has shown a sideways movement over the past ten days, fluctuating in the range between $61,000 and $65,000, according to data from CoinMarketCap presented. Even the last ones reduce by half failed to exert decisive momentum up its trajectory.
Is there demand for ETFs?
Julio Moreno, head of research at the chain’s research firm CryptoQuant, attributed this in part to declining inflows into US spot ETFs.
In fact, net outflows of $217 million were recorded on April 25, and funds have drained nearly $147 million since the week began, AMBCrypto noted using Valor regularly data. More than $200 million in Bitcoins were sold off last week.
Note that since their launch in early January, these investment vehicles have been one of the key drivers of Bitcoin’s price movement. Net positive days have always pushed prices up and vice versa.
Available supply will be able to meet demand for a longer period
The decline in demand was also evident in the sharp fall in the directions of accumulation since the end of March. For those curious, accumulation addresses are those that have a history of only buying BTC, but no history of selling.
ETFs, which absorb BTC to back their stocks, fall into this category.
Consequently, the liquidity holding ratio, which measures the liquidity of the asset’s sell side versus demand, rose sharply from 15 months at the end of March to 24 months at the time of writing.
What this meant in simple terms was that the available BTC supply would last longer given the drop in demand.
Source: CryptoQuant
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Shivam Thakral, CEO of Indian cryptocurrency exchange BuyUcoin, predicted that the upcoming IPO of Hong Kong Spot ETF
could contribute to increasing demand for the royal coin. In a statement shared with AMBCrypto, he said:
“Following the launch of the Hong Kong ETF, we can expect January-like price momentum for Bitcoin, which could potentially take the largest cryptocurrency to a new ATH in the coming months.”
This is an automatic translation of our English version.
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