Is Bitcoin’s Recent ETF Inflow Surge a Setup for a Fall? What Traders Need to Know
July 24 2024 - 12:30AM
NEWSBTC
Amid rising institutional engagement in Bitcoin, a sharp spike in
exchange-traded fund (ETF) inflows over the past few days has
sparked interest from traders and analysts alike. Earlier today, a
noteworthy analysis from the popular trader Skew on social platform
X highlighted a potential risk for Bitcoin amidst its current
influx of capital. Skew pointed out the phenomenon he dubs the
“headline curse,” noting that while the significant inflow of over
$500 million into United States spot Bitcoin ETFs signifies growing
institutional confidence, it may also foreshadow a looming price
correction. Related Reading: Bitcoin (BTC) Could Be On The Verge Of
a 30% Gain, Here’s Why Record High Bitcoin ETF Inflows Signal
Market Shifts The recent resurgence in popularity for Bitcoin ETFs,
particularly spotlighted by the BlackRock iShares Bitcoin Trust
(IBIT), which alone saw $526 million in inflows on June 22, brings
with it a history of similar occurrences that often led to price
sell-offs. Bitcoin ETF Flow (US$ million) – 2024-07-22 TOTAL NET
FLOW: 533.6 (Provisional data) IBIT: 526.7 FBTC: 23.7 BITB: ARKB: 0
BTCO: 13.7 EZBC: 7.9 BRRR: 0 HODL: -38.4 BTCW: 0 GBTC: 0 DEFI: 0
For all the data & disclaimers visit:https://t.co/4ISlrCgZdk —
Farside Investors (@FarsideUK) July 23, 2024 Skew emphasized that
such high inflow days usually correspond to market supply zones,
where sellers historically start moving back into the markets
looking for price weakness. This spike in inflows represents a
critical juncture for the cryptocurrency, potentially setting the
stage for either a bullish continuation or a bearish retreat,
depending on several market factors that Skew outlined. Skew
further proposed in the analysis that sustaining the current
bullish momentum hinges on a few key indicators. These include a
consistent passive spot bid, which involves limiting spot buyers
capitalizing on price dips, and the ability of spot takers to
continue bidding through existing spot supply, which is necessary
to breach the five-month supply barrier. Additionally, the
absorption of sellers plays a crucial role; it is a fundamental
aspect that needs to be addressed to reach new all-time highs.
Although the influx of funds into Bitcoin is a sign of positivity,
Skew points out that it will test the market’s ability at these
crucial levels to keep demand strong and absorb selling pressure.
Another large inflow day👇$BTC As bullish as this is each other time
IBIT reported mid – high 9 fig inflow days it occurred around
market supply zones somewhat a headline curse lol So in terms of
actually trading this, the obvious part is now does the market
sustain this… https://t.co/qdGwMAvVjl pic.twitter.com/iZ921tpKHW —
Skew Δ (@52kskew) July 23, 2024 Impending Sell Pressure Speaking of
sell pressure, blockchain analytics firm Arkham
Intelligence recently revealed that the US government has
transferred $3.96 million from the seized Bitcoin to Coinbase.
Adding to this possible sell pressure, Arkham Intelligence, in
another report on X, also revealed that the defunct crypto
exchange, Mt. Gox, may be moving to continue its Bitcoin sale.
Yesterday, the exchange made test transactions depositing $1 to 4
separate Bitstamp deposit addresses. Related Reading: Last
Resistance: Bitcoin Now Testing Final Short-Term Holder Cost Basis
Regardless of these possible sell pressures, Bitcoin still
maintains its price above $65,000, with the asset currently trading
at $66,981 at the time of writing. Featured image created with
DALL-E, Chart from TradingView
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