Bitcoin has seen a slowdown in its price movement, recently bouncing back above $60,000. This sluggish movement is attributed to a decrease in demand for Spot Bitcoin ETFs.
Spot Bitcoin ETFs initially saw significant inflows of billions of dollars in the first few months after their launch, leading to a surge in Bitcoin’s price and reaching a new all-time high in March. However, demand for these ETFs has waned since the beginning of the month.
Research firm Kaiko reported a steady decline in net inflows across all ETFs, impacting Bitcoin’s bullish momentum and causing it to trade sideways. Andrey Stoychev, Head of Prime Brokerage at Nexo, cautioned that without a catalyst, Bitcoin was unlikely to experience a significant price surge and would likely continue trading around $67,000.
Despite the current situation, there is hope for a potential uptick in demand for Spot Bitcoin ETFs, which could provide a boost to Bitcoin’s price. Recent data showing net inflows into Grayscale’s GBTC on May 3 suggests a possible trend reversal for these ETFs.
Another factor influencing Bitcoin’s price decline is the need to clear the CME gap at around $62,580, as predicted by crypto analyst Mikybull Crypto. Once this gap is cleared, there may be a positive turnaround in Bitcoin’s price.
Mikybull Crypto also believes that Bitcoin has reached its local bottom, but it will need to surpass the $67,000 level and consolidate before moving towards $73,000.
With Bitcoin currently trading at around $63,400 and showing a slight decrease over the past 24 hours, analysts suggest that it may be a good time to accumulate the cryptocurrency. The Market Value to Realized Value (MVRV) 90-day ratio indicates that Bitcoin is still in a “prime buy zone.”
In conclusion, while Bitcoin’s price may be facing challenges at the moment, there are indications of potential improvements in the near future. It is essential for investors to conduct their own research and consider the risks before making any investment decisions.