Tuesday, February 18, 2025

Bitcoin ETF Inflows Surge, Fueling Concerns of Price Decline

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Originally published on: October 24, 2024

Amidst a flurry of activity, spot Bitcoin exchange-traded funds (ETFs) in the US have been witnessing unprecedented inflows, raising alarms among analysts about a possible price downturn for Bitcoin.

According to Hyblock Capital CEO Shubh Varma, the recent surge in BTC ETF inflows could be signaling a bearish trend ahead. Varma noted that over the past few days, there have been “unusually large” inflows exceeding $300 million, a cause for concern in the market.

Data from Farside shows that between October 11 and 21, there was a seven-day streak of inflows totaling $2.68 billion before experiencing a slight outflow of $79.1 million on October 22. However, on October 23, inflows resumed with $192.4 million coming in.

Since the launch in January, spot Bitcoin ETFs have accumulated flows of approximately $21.41 billion. This surge in inflows mirrors a similar pattern observed earlier in the year that led to a 13% price drop in Bitcoin three weeks later.

While some analysts like Varma are wary of a potential price decline, others like North Node Capital’s Pentosh1 believe that the influx of money could indicate an impending supply shock. Market analyst Anup Dhungana also speculates on the possibility of a supply shock affecting the market dynamics.

Despite the uncertainty surrounding Bitcoin’s price, options traders on platforms like Deribit are optimistic about Bitcoin reaching $80,000 by the end of November. This optimism comes at a time when market movements are closely being monitored following the US presidential election.

It’s important to note that this article does not provide investment advice, and readers are encouraged to conduct their own research before making any investment decisions. Stay updated on market insights and trends by subscribing to our Markets Outlook newsletter for valuable information delivered to your inbox every Monday.

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