CryptoQuant CEO Ki Young Ju has made a prediction regarding the spot Bitcoin exchange-traded fund (ETF) market.
CryptoQuant CEO Ki Young Ju has made a prediction regarding the spot Bitcoin exchange-traded fund (ETF) market, stating that it could experience a rebound in demand if the price of BTC continues to decline.
Analyzing historical net flow trends, Young Ju observed that demand for Bitcoin ETFs tends to rise when the cryptocurrency reaches specific price levels. However, BitMEX Research reveals that spot BTC ETFs have recently seen negative net flows, with outflows from the Grayscale Bitcoin Trust ETF and reduced inflows to other BTC ETFs over the past four trading sessions.
The CEO highlighted that new BTC whales, particularly ETF buyers, have an on-chain cost basis of approximately $56,000. If Bitcoin's price were to dip to this level, Young Ju anticipates significant inflows into the ETFs.
Young Ju suggests the possibility of a further dip in BTC, as corrections typically result in a drop of around 30%. This could bring Bitcoin's price to approximately $51,000 from its recent all-time high of $73,750. The recent correction in Bitcoin's price was attributed to overheated market conditions, described by analysts as retracement ahead of the upcoming Bitcoin halving event scheduled for April.
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