The leading cryptocurrency Bitcoin fell to $ 65,000 with the declines it experienced on Monday and Tuesday.
While wondering about the reasons for this decline and whether it will continue, Bloomberg wrote that data updates on spot Bitcoin ETFs created fluctuations in the cryptocurrency market during the opening hours of Asian trading after the US stock market close.
Accordingly, analysts speaking to Bloomberg stated that the price fluctuations in BTC and cryptocurrencies are due to the effects of automatic trading protocols that react to data in the US spot Bitcoin ETFs.
Analysts also said yesterday morning's decline in Bitcoin and the broader crypto market was driven by data showing an outflow from US ETFs, making it the most significant drop in the past month during Asian trading hours.
Shiliang Tang, president of Arbelos Markets, commented on the implications of the ETF data:
“From an algorithmic trading perspective, bots can essentially automatically process spot Bitcoin ETF data from the US and place trades based on that data.
The fact that the decline in Bitcoin at the opening of Asian trading hours occurred after ETF data from the USA clarifies the source of the decline.
While there was a visible strengthening in the Bitcoin and cryptocurrency markets during Asian trading hours in February and early March, following the positive flow in ETF data, a decline was observed after the outflows in ETF data in late March.
“This explains the decline in BTC price during Asian hours.”
Bitcoin continues to trade at $66,280 at the time of writing.
*This is not investment advice.
