Bitcoin (BTC) has recently experienced a price slowdown, despite having recovered above $60,000. One of the factors believed to contribute to this tepid price movement is the reduced demand for Spot Bitcoin ETFs. These ETFs had initially recorded billions of dollars in net inflows in the first three months of their launch, leading to a significant rally in Bitcoin’s price. However, the demand for these funds has been declining since the beginning of the month, with net inflows across all ETFs steadily dropping, as noted in a recent report by research firm Kaiko. This decline in demand has ultimately impacted Bitcoin’s bullish momentum, causing the flagship crypto to trade sideways.
Andrey Stoychev, Head of Prime Brokerage at Nexo, had previously warned that Bitcoin might not experience a significant price surge without a catalyst. He indicated that Bitcoin would likely continue to trade around the $67,000 price range, bouncing off support and resistance levels in the meantime. The silver lining in this situation is the potential for a resurgence in demand for Spot Bitcoin ETFs, which could provide a much-needed boost to Bitcoin’s price. Recent data shows that Grayscale’s GBTC recorded its first day of net inflows on May 3, raising hopes for a trend reversal in these ETFs.
Market Analysis and Price Predictions
Crypto analyst Mikybull Crypto has predicted that Bitcoin could drop below $62,580 to clear the CME gap, which exists due to the Chicago Mercantile Exchange’s Bitcoin futures market not operating on weekends. However, the analyst also suggested that once Bitcoin clears this gap, there could be a resurgence in its price. Despite the current sideways movement, Mikybull Crypto believes that Bitcoin’s local bottom is in, and the crypto token might need to consolidate around $67,000 before moving towards $73,000. In anticipation of a potential price surge, now might be an excellent time to accumulate Bitcoin, especially since the Market Value to Realized Value (MVRV) 90-day ratio indicates that it is still in a “prime buy zone.”
As of the time of writing, Bitcoin is trading at around $63,400, showing a slight decline of over 1% in the last 24 hours. Despite the current struggles to hold above $64,000, there are indications of potential catalysts that could drive Bitcoin’s price up in the near future. However, it is essential to conduct thorough research and analysis before making any investment decisions, as investing in cryptocurrencies carries inherent risks. The opinions expressed in this article are for educational purposes only and do not reflect the views of NewsBTC.
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