Bitcoin’s potential decline likely if there is a decrease in ETF investments, says analyst.
Bitcoin exchange-traded funds (ETFs) in the United States experienced a surge in investments last week, setting a new record. However, analysts are warning of potential price declines if the demand for these ETFs weakens.
Data from Farside Investors reveals that a total of $2.6 billion was invested in the 10 ETFs over a five-day period ending on March 15. The majority of these investments took place early in the week, driving the price of Bitcoin (BTC) to new highs of nearly $74,000.
Towards the end of the week, however, the momentum started to fade. Only $133 million and $198 million of net inflows were recorded on Thursday and Friday respectively. As a result, Bitcoin experienced a sharp decline over the weekend, falling below $65,000.
Although the price found support around $67,000, analysts such as Markus Thielen, the founder of 10x Research, have highlighted the importance of Monday and Tuesday. According to Thielen, if the inflows into the ETFs fail to meet expectations due to recent market volatility, a continuation of the correction could be anticipated.
Thielen’s report suggests that a retracement to $59,035, representing a 10% drop from the current prices, is possible based on reversal indicators. Despite the potential for a deeper correction, the report remains optimistic about the overall trajectory of the crypto market.
Thielen commented, “We can still argue that Bitcoin will climb significantly higher in the coming months as this bull market is likely to continue.” He emphasized the significance of Bitcoin surpassing the $70,000 threshold, which could open the doors for further gains.
In other news, Standard Chartered predicts that Bitcoin will reach $150,000 by the end of 2024. For more updates, follow us on Google News.
