Bitcoin Price Manipulation? ETF Inflows Have ‘Small’ Impact, Experts Say

Bitcoin Exchange-Traded Funds (ETFs) in the US have seen a record 17 days of net inflows. The second-highest single-day flood since their launch was on Tuesday, when these ETFs received $886.6 million.

Fidelity ($220.6 ), Blackrock ($155.1 million), and Ark ($71.4 million) contributed to another $488.1 million influx yesterday. Despite these large capital inputs, Bitcoin has only crept from $68,000 to $71,000 since the week began.

Despite large ETF inflows, price movement has been subdued, confusing market participants and experts. Bitcoin prices usually rise further with such influx. Recent pricing patterns show additional counteracting variables may be involved.


Why Is Bitcoin Not Rising?

A crypto trading analytics platform In an X post, the Kingfisher said a carry trading strategy may be affecting price dynamics. According to their study, "BTC ETF inflows didn't affect price as much as you hoped?" A loaded carry trade may be to blame. Buy spot/ETF, short futures.”

Shorting Bitcoin futures and purchasing spot Bitcoin or Bitcoin ETF shares is a carry trade. This technique may hedge price volatility and capitalize on futures-spot price differences.

His comments suggest lawful planned market manipulations that blur the borders between smart investing and ethical issues. Follow-up tweet: “Market manipulation or savvy investment strategy...what’s the difference?” questions the ethics of such techniques, challenging the narrative.

Crypto community scrutiny increased after the conversation. X user Sahra said, “Carry trade should suppress funding rates naturally. All else being equal, long spot pressure against the perpetual should lower perpetual rates as it lags spot. Everything else makes sense, but these rates are too low for a carry IMO.”

This statement highlights the complexity of carry trades, where predicted results like decreased financing rates do not match market observations, indicating other variables are impacting the market.

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