Amid the turbulent period in the cryptocurrency market, the decline in Bitcoin has made investors nervous before the halving.
While the recent decline in Bitcoin prices is thought to be closely linked to the outflows in spot Bitcoin ETFs in the USA, a new post came from Bloomberg analyst Eric Blchunas.
Emphasizing that the outflows in BTC ETFs are relatively small at this point, Balchunas stated that the recent outflows are not a reason to be alarmed in Bitcoin.
Stating that it is quite normal for the ETF excitement to cool down after the records, the Bloomberg analyst said that the last price drop was not caused by institutional investors in ETFs but by BTC investors called HODLers:
While it's been said “it's all over” lately, I'd like to offer a different perspective on the ETF flow:
1. It's only natural for the ETF category to cool off after such a breathtaking pace, especially with prices dropping 12% in the last 5 days.
2. The outbursts experienced are extremely small and microscopic in size. Because in the last five days, the net flow of the ten companies was -223 million dollars; This represents 1% of the ten's net inflows and 0.4% of its assets since launch.
3. This net figure is still tied to GBTC, as the new nine has seen a +$330 ENTRANCE in the last 5 days, extending the IBIT entry streak to 67 days, which is a minor miracle.
4. Back to the 12% price drop in 5 days: 1) this applies to BTC natives called HODLers. So the recent decline was not caused by institutional investors. 2) despite the price drop, BTC is up 144% since BlackRock filed last June, which is 10 times the Invesco QQQ return = if you are depressed by these returns on Bitcoin you should seek medical attention.”
Bitcoin is traded at $63,970 with the rise it has experienced in recent hours.
*This is not investment advice.