Surprise Bitcoin ETF Outflow: Can $69K Support Last?

Bitcoin (BTC) experienced a drop below $70,000 on April 9, losing momentum after the excitement of the weekly close. The price decline, which reached a low of $69,635 on Bitstamp, marked a 4.3% decrease from the previous day’s high. This drop in price was accompanied by a wavering short-term sentiment among traders. The first Wall Street trading session of the week was disappointing for Bitcoin bulls, as US spot Bitcoin exchange-traded funds (ETFs) saw little capital inflow. The Grayscale Bitcoin Trust (GBTC) experienced a net outflow of $300 million, resulting in heavily negative overall flows.

Data from UK investment firm Farside showed net outflows totaling just over $200 million, despite the surge in Bitcoin’s price the previous day. This was an unexpected turn of events and one of the largest negative flows seen in ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC) managed to avoid losses and continued to receive inflows. It was anticipated that these net flows would improve after Genesis, a bankrupt crypto lender, announced the completion of its multi-billion-dollar offloading of GBTC shares, which were then used to buy BTC.

Although ETF flows were slow, market participants speculated on the reasons behind this. Popular commentator WhalePanda suggested profit-taking as a possibility, even though ETFs are typically held in the long term. Another factor that could have influenced the slow flows was the upcoming US Tax Day on April 15.

Traders were divided in their predictions for short-term BTC price action. Some, like trader Crypto Ed, looked for signs of an upward reversal and set a target of $73,000. They considered this level as the first step toward reaching new all-time highs after Bitcoin successfully retested its 2021 cycle high. Trader Credible Crypto was more cautious and reiterated their theory of a potential dip in BTC price to $60,000 or lower.

Bitcoin faced a decline in price and slow ETF flows, raising questions about short-term sentiment and potential market trends. Traders had varying predictions, with some anticipating an upward continuation and others expecting a further correction. These uncertainties in the market would likely shape Bitcoin’s price trajectory in the coming days.