#Write2earn #Bitcoin Pullback: #ETF Outflows Signal Market Uncertainty, one of the worst weeks in 2024 #bitcoinETF #bloodbath $BTC
Bitcoin has pulled back over 10% from its peak, mainly due to reduced interest in new spot Bitcoin exchange-traded funds. JPMorgan Chase and Co. analysts are cautioning that this pullback might have further to go.
The cluster of 10 spot Bitcoin ETFs is witnessing its largest weekly outflow since their launch on January 11. Concurrently, Bitcoin, the worldâs largest cryptocurrency, is experiencing one of its toughest weeks this year, with a 4% drop. Its value stands at $65,434 as of 9:48 a.m. Friday in London.
According to JPMorgan strategists, Bitcoin appears to be overvalued, echoing their earlier prediction in February of possible declines leading up to April's highly anticipated halving event, which will reduce the supply of newly mined Bitcoin.
The sustained interest in CME Bitcoin futures coupled with declining flows into ETFs are significant warning signs for Bitcoin's price, the strategists noted in a Thursday report.
The strategists also highlighted a slowdown in net inflows into spot Bitcoin ETFs, particularly evident in the past week with significant outflows. This challenges the expectation of a continuous one-way influx into spot Bitcoin ETFs. They anticipate profit-taking to persist as the halving event nears, especially given the currently overbought market sentiment despite the recent correction.
In the previous month, the bank forecasted a potential drop in Bitcoin's price to around $42,000 post-April as the hype around the halving event diminishes.
From Monday through Thursday, a net $836 million was withdrawn from ETFs, reflecting outflows from the Grayscale Bitcoin Trust and a decrease in subscriptions for similar offerings from companies like BlackRock Inc. and Fidelity Investments.
Despite the record high of nearly $73,798 on March 14, retail trader enthusiasm may be fading, according to Naeem Aslam, chief investment officer at Zaye Capital Markets.
