A notable shift in market sentiment has recently been observed, particularly around the Bitcoin spot Exchange-Traded Funds (ETF) narrative. YouTube analyst Crypto Banter, in a recent analysis, that the initial excitement surrounding Bitcoin spot ETFs is waning, leading to a change in investor behavior.
According to Crypto Banter, despite significant trading volumes in spot Bitcoin ETFs, which totaled $4.6 billion with Grayscale (GBTC) leading the pack, there’s more than meets the eye.Analyst Predicts Pullback Amid Local Top Signs
A deeper look into the analyst’s video reveals that GBTC’s sales are primarily attributed to its higher fees and the locking up of “older Bitcoin,” indicating minimal new inflows. According to the analyst, this lack of new capital could trigger market apprehension, leading to a sell-off.The trend is still very much towards the upside but as soon as price starts to break down below [the] key levels we’re probably going lower $38,000 and then $30,000 next.Looking at the bigger picture, the upcoming Bitcoin halving, set to occur later in April, is expected to propel demand and, consequently, the price of Bitcoin, according to the analyst.
The analyst further acknowledges that while the market has witnessed a significant upward trend, these have been interspersed with substantial corrections, some as severe as 40%. While a correction of this magnitude isn’t forecasted, the analyst suggests a pullback in the 20-30% range is plausible.
Behind Bitcoin Bearish Turn
Bitcoin has shown bearish price action, decreasing by 5% in the last 24 hours, with a trading price of $43,791. This downturn follows a recent spike above $48,000, spurred by the live trading of spot Bitcoin ETF trading in the United States on Thursday.
Dan Ripoll, managing director at Swan Bitcoin, sheds light on the current price dynamics, attributing them to the time brokerage firms’ compliance departments took to approve new products. Ripoll that large broker-dealers like Vanguard, UBS, Citi, and Merrill Lynch have restricted or completely disallowed their retail clients from purchasing spot Bitcoin ETFs.
The dollars behind today’s spot ETF volume haven’t even hit the fund portfolio managers’ desks yet. Most create orders behind today’s flows will get cash settled tomorrow morning T+1 … i.e. the capital behind today’s wave hasn’t even started lifting offers in the UTXO market. — Matt Dines (@BuildCIO)Featured image from Unsplash, Chart from TradingView