Bitcoin Dip? Don’t Panic! Analyst Predicts 75% Surge After ETF Volume Boom
The post Bitcoin Dip? Don’t Panic! Analyst Predicts 75% Surge After ETF Volume Boom appeared first on Coinpedia Fintech News
Bitcoin is back in the spotlight, and this time it’s the exchange-traded funds (ETFs) making headlines. According to Santiment, a market intelligence powerhouse, trading volume for top Bitcoin ETFs has skyrocketed, reaching its highest level since mid-May. But wait, there’s more!
According to a report by Santiment, a market intelligence platform, the combined trading volume for the top seven largest Bitcoin ETFs hit around $2.89 billion.
Despite this surge in ETF activity, interest from retail investors in Bitcoin has dipped to its lowest point in five months, reminiscent of a similar trend observed in January. However, historical data suggests that such declines can precede substantial upswings, as evidenced by a remarkable 75% surge over the following two months.
Analyzing the Surge: Bitcoin ETF Trading Volume
The recent spike in Bitcoin ETF trading volume has piqued the interest of investors and analysts alike. Santiment’s report reveals a significant increase in trading activity across the top seven BTC ETFs, including well-known names like GBTC, IBIT, FBTC, ARKB, BTCO, BITB, and HODL.
— Santiment (@santimentfeed) June 11, 2024
Bitcoin ETF volume has jumped to its highest level since May 15th, according to data from the top 7 largest ETF's. When these volume spikes occur, there is more of a chance of prices making a turnaround. This latest spike was likely a dip buy reaction. Do you expect a bounce? pic.twitter.com/Kkv5tU3Mji
The latest surge, amounting to $2.89 billion, mirrors patterns observed previously on March 5th, when volume peaked at an impressive $11.13 billion. This surge indicates a renewed interest among investors, possibly signaling a reaction to market dips.
Contrast: Outflows in U.S. Spot Bitcoin ETFs
In contrast, U.S. spot Bitcoin exchange-traded funds have seen net outflows of $200 million on Tuesday, continuing a trend from Monday, which marked the end of their 19-day streak of net inflows.
Grayscale led this exodus, experiencing the largest net outflows of $121 million, followed by Ark Invest with $56 million in net outflows.
Understanding Retail Investor Sentiments
Meanwhile, CryptoQuant author Axel Adler, pointed out that Interest in Bitcoin from retail investors has dropped to the lowest level in five months, similar to what happened back in January. But back then, Bitcoin shot up by a whopping 75% in the next two months.
The average monthly change in demand for bitcoins from retail investors <$10K has fallen to -17%.
— Axel
A similar previous drop to -18% ended with an increase from 40K to 70K. pic.twitter.com/KKXoCddfxsAdler Jr (@AxelAdlerJr) June 10, 2024
Adler notes a significant -17% average monthly change in Bitcoin demand among retail investors (<$10K). Previously, a similar -18% drop led to Bitcoin’s price skyrocketing from $40K to $70K after the approval of spot Bitcoin ETFs in the U.S.
Adler suggests that while retail demand for Bitcoin may currently be low, historical trends hint at the potential for a 75% surge, possibly propelling Bitcoin’s price to around $120k in the coming months.
As of now, Bitcoin is trading at $67,412, reflecting a 1.4% decrease in the last 24 hours. Despite this drop, trading volume has surged by 8%, reaching $31.3 billion, with a market cap of $1.32 trillion.
Also Read: Bitcoin ETF Tracker: May Month Performance Review and Insights
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