Bitcoin price has surpassed the $70,000 mark after stagnating at that level for quite some time. However, the recent interest in the Bitcoin ETF could help BTC get back into the green.
The story of cash outflow and cash inflow
According to data from SoSoValue, total net inflows into spot Bitcoin ETFs stood at $179 million on March 28.
Specifically, Grayscale ETF GBTC recorded outflows of $104 million, while BlackRock ETF IBIT had inflows of $95.12 million and Fidelity ETF FBTC had inflows of $68.09 million.
As a result, the cumulative historical net inflows of these ETFs now stand at $12.12 billion.
Source: SoSoValue
This surge in inflows could imply that retail investor interest in ETFs in traditional markets is growing. High inflows are likely to lead to positive price movements for BTC in the future.
At the time of writing, BTC is trading at $70,590 and is up 0.57% over the past 24 hours.
While interest in Bitcoin is growing in the traditional finance sector, the same is not happening in the cryptocurrency space. BTC transaction speeds also decreased during this period. Thus, the transaction frequency of the coin king has decreased. The decreasing rate may indicate that current addresses are no longer interested in BTC.
Additionally, the total number of holders accumulating BTC also decreased. These factors may impact future prices.
Source: Santiment
Miner's condition
Another factor that can affect the price of Bitcoin is the status of miners on the network. Blockhain.com data analysis shows an increase in revenue earned by miners.
Increased revenue means miners will not have to sell their BTC holdings to maintain profits.
General selling pressure on BTC may also ease. However, the upcoming halving may change the direction of miners as their rewards will decrease.
This could lead to more miners choosing to sell. While halvings have historically been bullish events for Bitcoin, many holders will have to accept possible short-term sell-offs.
Source: Blockchain
Interest in Bitcoin Spot ETFs Drops: Due to Memecoin Fever?
Bitcoin ETFs absorb supply at the rate that newly mined coins are acquired or absorbed by these funds.
This metric is important because spot ETFs absorbing more and more supply could lead to upward price pressure on BTC.
Conversely, falling demand can signal a decline in potential value.
Oininen_t noticed that Bitcoin supply absorption recently turned negative and fell to a low of -0.38. Confirming the above point of view, the analyst commented:
“Despite the hype about the upcoming halving in the next 21 days, the spot price of Bitcoin has not changed significantly over the past 30 days. One explanation for the stagnant price action is the negative supply absorption metrics of ETFs.”
The analyst added that when spot ETFs fail to absorb newly mined coins:
“Demand for the approximately 900 Bitcoins issued daily must come from other sources.”
However, in the current market, retail investors who usually accumulate these coins have turned their attention to memecoins.
Over the past few weeks, the value of several memecoins on Solana has increased by triple digits, leading to a significant increase in the memecoin market capitalization.
Theo Oininen_t,
“While retail investors show growing interest in Bitcoin, their focus is likely to be on new tokens based on Solana and “memecoins”.”
The analyst concluded that negative supply absorption is a temporary weakness in the spot ETF market.
“The bigger picture still looks promising. In a multi-year scenario, I see Bitcoin trying to achieve market cap parity with gold, which would mean a 1000% increase from the current spot price.”
Since its launch, spot Bitcoin ETF volumes have increased significantly. At $182 billion at the time of writing, the asset's cumulative daily volume has increased by more than 3500%.
Source: The Block
With assets under management (AUM) of $24 billion, Grayscale Bitcoin Trust (GBTC) currently holds the largest share of the BTC spot ETF market.
https://tapchibitcoin.io/su-quan-tam-den-bitcoin-etf-giao-ngay-giam-la-do-con-sot-memecoin.html
