Bitcoin (BTC) has experienced a price drop and recently recovered above $60,000. This tepid price movement is believed to be due to a number of factors, including reduced demand for the Discover Bitcoin ETFs.
Spot Bitcoin ETFs have lost their spark
The Discover Bitcoin ETFs registered net inflows of billions of dollars in the first three months after launch. This contributed to the significant rally that Bitcoin recorded around the time the funds were approved, with the flagship crypto rising to one new all-time record (ATH) in March. However, since the beginning of this month, demand for these funds has decreased.
Research agency Kaiko too noted its recent report shows that net inflows across all ETFs have been steadily declining for some time. This ultimately affected Bitcoin’s bullish momentum, with the flagship crypto trading sideways. Bitcoin’s price movement over the past 24 hours suggests the recovery is above $60,000 wasn’t necessarily a bullish reversal.
Andrey Stoychev, head of Prime Brokerage at Nexo, had that warned earlier that Bitcoin was unlikely to experience a significant price increase without a catalyst. He added that the crypto token would likely continue trading around the $67,000 price range. That means you can expect Bitcoin to continue bouncing around support and resistance in the meantime.
The silver lining is that demand for the Spot Bitcoin ETFs could pick up soon enough, with these funds likely to provide a much-needed boost to Bitcoin’s price if that happens. A trend reversal for these ETFs appears to be imminent, especially after Grayscale’s GBTC included the first day of net inflow on May 3.
Another reason why the price of Bitcoin is falling
Crypto analyst Mikybull Crypto also recently predicted that Bitcoin could fall to solve the problems CME Gap (Chicago Mercantile Exchange). around $62,580. This price difference exists because the CME Bitcoin futures market is not active on weekends. The crypto analyst added that things could improve once Bitcoin resolves the CME gap.
The analyst also suggested that the worst could be behind us regardless of whether Bitcoin continues to trade sideways, as he stated that the crypto token’s local bottom has been reached. However, Mikybull Crypto also has predicts that Bitcoin will have to clean up the problems Price point of $67,000 and consolidate before it can move to $73,000.
Pending this price increase, now seems to be an excellent time to accumulate the flagship crypto, as crypto analyst Ali Martinez said: Bitcoin’s market value to realized value (MVRV) The 90-day ratio indicates it is still in a prime buy zone.
At the time of writing, Bitcoin is trading around $63,400, down more than 1% in the past 24 hours. facts from CoinMarketCap.
BTC price struggles to hold $64,000 | Source: BTCUSD on Tradingview.com
Featured image from Born2Invest, chart from Tradingview.com
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