As a researcher with experience in the cryptocurrency market, I believe that the current price stagnation of Bitcoin (BTC) can be attributed to several factors. One of the most significant reasons appears to be the decline in demand for Spot Bitcoin Exchange-Traded Funds (ETFs).
Bitcoin‘s price growth has eased off lately, climbing back above the $60,000 mark but failing to maintain momentum. This lethargic trend in Bitcoin’s value may be attributed to a few reasons, such as waning interest in purchasing Spot Bitcoin Exchange-Traded Funds (ETFs).
Spot Bitcoin ETFs Have Lost Their Spark
In the initial three-month period after their launch, Spot Bitcoin ETFs attracted billions in net investments. This influx played a pivotal role in Bitcoin’s notable surge towards a new record high (ATH) around the time of approval. However, interest in these funds has waned noticeably since then.
Kaiko’s latest research indicates a consistent decrease in new investments into all ETFs. Consequently, this trend has dampened Bitcoin’s previous bullish advance, causing it to trade flat around the $60,000 mark. The recent price fluctuations of Bitcoin in the last day raise questions about whether its recovery above $60,000 represents a genuine bullish turnaround.
As a crypto investor, I’ve taken note of Andrey Stoychev’s perspective as the Head of Prime Brokerage at Nexo. He’s previously expressed doubt about a significant Bitcoin price surge without a catalyst. Instead, he anticipates that Bitcoin will mostly trade within the $67,000 range. So, in the short term, we can expect Bitcoin to keep bouncing off its support and resistance levels.
As a researcher studying the trends in the Bitcoin market, I’m optimistic about the potential surge in demand for Spot Bitcoin Exchange-Traded Funds (ETFs). These funds could significantly contribute to Bitcoin’s price increase once they gain traction. The recent reversal in the ETFs trend is noteworthy, with Grayscale’s GBTC experiencing its first day of net inflows on May 3 – a promising sign for the Bitcoin ETF market.
Another Reason Why Bitcoin’s Price Is Down
Expert response:
The analyst offered a hopeful perspective, implying that the toughest part could be over for Bitcoin’s price, regardless of whether it stayed in its current range or not. He maintained that the digital currency had reached its local low point at its current price. However, Mikybull Crypto anticipates that Bitcoin must first surpass the $67,000 mark and establish a period of stability before attempting to advance towards the $73,000 threshold.
With the upcoming price increase predicted by crypto expert Ali Martinez, now could be an ideal opportunity to acquire a substantial amount of Bitcoin. According to his analysis, Bitcoin’s Market Value to Realized Value (MVRV) ratio over the past 90 days suggests that it remains in a favorable buying range.
As I analyze the cryptocurrency market at this moment, Bitcoin is priced approximately at $63,400 based on current data from CoinMarketCap, representing a 1% decrease in value over the past 24 hours.
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2024-05-07 15:04