Cryptoquant founder and analyst Ki Young Ju suggested that demand for Bitcoin ETFs may increase even as the Bitcoin (BTC) price continues to fall. In a post, Ju used historical net flow trends to support his prediction.
According to Ju, demand for Bitcoin ETFs generally increases when the BTC price reaches certain support levels. However, the analyst noted that net flows of Bitcoin spot ETFs are currently slowing.
“Demand may recover if BTC price approaches critical support levels,” Ju said. He also announced that the on-chain cost basis for new whales, primarily ETF buyers, is $56,000.
In bull markets, corrections usually involve a maximum drawdown of around 30%, and in this case the maximum loss point is at $51,000. Ju noted that new whales purchased Bitcoin mostly through spot ETFs at an average price of $56,400. In comparison, the average purchase price of ancient whales is $21,300 thousand.
At the time of writing, BTC price is trading at $65.0300 and has gained 2.37% in the last 24 hours.
*This is not investment advice.
