On April 9, Bitcoin ETFs saw a downturn, falling to the $70,000 threshold. This represents a 4.3% decrease from the previous day’s figures. The decline coincided with the start of Wall Street’s weekly trading session, causing concern among cryptocurrency investors about the unpredictability of the market. These events triggered a redrafting of strategies to cater for the unforeseen downturn.
The day brought meager capital infusions into Bitcoin ETFs in the U.S., a phenomenon negated by a hefty $300 million withdrawal from the Grayscale Bitcoin Trust (GBTC). This accumulation of factors resulted in a net outflow exceeding $200 million, marking a predominant negative flow for the entire day.
Crypto analyst, Mark Cullen pointed out the noteworthy occurrence of significant ETF outflows in spite of Bitcoin’s price increase the day before. However, two leading ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC), successfully evaded the downturn and sustained their typical influx.
Even though certain expectations pointed towards a sharp rise in net inflows due to a bankrupt crypto lending company finalizing transactions to acquire Bitcoin, a uniform increase did not take place. The exact influence and interplay of several factors contributing to this irregularity, including the U.S. tax day on April 15, remain undefined.
Downturn prompts strategy overhaul for Bitcoin ETFs
In light of Bitcoin’s current revisitation of its 2021 cycle peak, traders are vigilantly looking for indications of a short-term price boost. Opinions among traders vary widely, from an ambitious $80,000 target by Crypto Ed, to a conservative estimate of a slow climb to around $75,000 by trader Fred. Nevertheless, the overall mood among these traders leans towards optimism.
However, not all traders share this upbeat outlook. Credible Crypto predicts a potential decline in Bitcoin price to $60,000 or lower. It’s imperative for investors to conduct their independent research prior to making any investment decisions. This article does not offer any investment advice or recommendation.
