The future of Bitcoin (BTC) is closely tied to spot Bitcoin ETF inflows in the United States, according to a recent report from cryptocurrency analysis firm 10X Research. The firm noted that these ETFs recorded record inflows last week. However, a decrease in demand in the coming days may trigger a downward trend in Bitcoin's price.
Bitcoin price, which has found short-term support and stabilized at $67,000, faces a “real test” next Monday and Tuesday, according to the analyst. 10X founder Markus Thielen suggests that the ongoing correction in Bitcoin price could continue if ETF inflows disappoint.
“Although this is an unpopular statement, once prices experience significant intraday volatility, inflows would be expected to slow,” Thielen wrote in his report on Monday. He also added that based on reversal indicators, a retracement of BTC price to $59,035 looks more likely.
Despite the potential for a deeper correction, the report opines that the crypto bull market is far from over. “Since this bull market will likely continue, we can bet that Bitcoin will rise significantly over the next few months,” Thielen said. He also suggested that if BTC rebounds above its all-time high of $69,000 in 2021, this could pave the way for much higher prices.
*This is not investment advice.