Bitcoin ETF

Bitcoin

Rekt

Certain Bitcoin fundamentals suggest the <a href="https://bitcoinist.com/bitcoin-price-rise-above-57000/" rel="nofollow">flagship crypto token</a> is well primed for further growth in <a href="https://bitcoinist.com/bitcoin-bull-market-glassnode/" rel="nofollow">this bull market</a>. However, its recent price decline has sparked concerns about the reason for this downward trend despite everything pointing to a sustained upward movement.&nbsp; 
<h2 id="bitcoin-supply-on-exchanges-hit-4-year-low">Bitcoin Supply On Exchanges Hit 4-Year Low</h2> 
<a href="https://cryptoquant.com/insights/quicktake/65f9a82a0d84564c5d5ce1b0-After-Selloff-Next-Steps-for-Traders-Review-of-Popular-On-Chain-Data" rel="nofollow">Data</a> from the on-chain analysis platform CryptoQuant highlighted that the <a href="https://bitcoinist.com/bitcoin-ablaze-data-reveals-robust-demand-for-etfs/" rel="nofollow">supply of Bitcoin on exchanges</a> has seen nearly a 40% drop in 4 years and is reducing ahead of the <a href="https://bitcoinist.com/why-bitcoin-halving-could-provide-a-big-boost-to-these-altcoins-growth/" rel="nofollow">Bitcoin halving</a>. This underscores the bullish sentiment around the <a href="https://bitcoinist.com/bitcoin-ordinals-craze-throws-up-challenges-and-opportunities-for-the-network/" rel="nofollow">Bitcoin ecosystem</a> as the decreasing supply on supply suggests that most investors have no plans to sell their holdings anytime soon.&nbsp; 
The CryptoQuant data also noted that <a href="https://bitcoinist.com/bitcoin-ablaze-data-reveals-robust-demand-for-etfs/" rel="nofollow">Bitcoin’s demand</a> is outpacing its supply, which is said to have been the prevailing trend since 2020. This development offers a bullish narrative as it can continue to increase Bitcoin’s value since “scarcity boosts perceived value.” This trend is also expected to be sustained once the Halving occurs since miners’ supply <a href="https://bitcoinist.com/bitcoin-supply-shock-57-of-btc-hasnt-moved-2-years/" rel="nofollow">will be cut in half</a>.&nbsp; 
Interestingly, the imbalance between Bitcoin’s demand and supply has led crypto analysts like <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-demands-exceeds-supply/">MacronautBTC to believe</a> that BTC’s price could rise to as high as $237,000. As such, there are still high expectations for Bitcoin despite the crypto token hitting a <a href="https://bitcoinist.com/bitcoin-breaks-through-69000-setting-new-record/" rel="nofollow">new all-time high (ATH)</a> of $73,750.&nbsp; 
<h2 id="why-bitcoin-s-price-is-crashing">Why Bitcoin’s Price Is Crashing</h2> 
<a href="https://bitcoinist.com/nobody-will-get-rich-investing-in-bitcoin/" rel="nofollow">Crypto analyst Alex Kruger</a> has <a href="https://x.com/krugermacro/status/1770240971223007251?s=20" rel="nofollow">outlined</a> different reasons why Bitcoin’s price is crashing despite its strong fundamentals. The first reason he alluded to was the fact that crypto traders in the <a href="https://bitcoinist.com/bitcoin-derivatives-market-volumes-show-bullish-trend-after-2022-downturn/" rel="nofollow">derivatives market</a> look to be overleveraged, possibly because greed seems set to be setting in with traders deploying more capital in anticipation of further price surges.&nbsp; 
Kruger mentioned that the ETH could also be dragging the market down with the hopes of the <a href="https://www.newsbtc.com/crypto/sec-announcement-crypto/#:~:text=What%20The%20SEC's%20Latest%20Announcement%20Means%20For%20The%20Crypto%20Industry,-by%20Scott%20Matherson&amp;text=A%20recent%20announcement%20by%20the,actions%20have%20had%20on%20it.">SEC (Securities and Exchange Commission)</a> approving the <a href="https://bitcoinist.com/ethereum-spot-etfs-sec-commissioner-signals-smooth/" rel="nofollow">Spot Ethereum ETFs</a> waning. Bitcoinist recently reported that the approval odds for these investment funds have plummeted immensely in the past few months, dropping to an alarming 35%.&nbsp; 
The third reason that Kruger mentioned is the negative <a href="https://bitcoinist.com/evaluating-performance-bitcoin-etfs-since-launch/" rel="nofollow">Bitcoin ETF inflows</a>, which have become a trend lately. Interest in these Bitcoin funds has cooled off, with investors opting to take profit instead. On March 19, BitMEX Research <a href="https://x.com/BitMEXResearch/status/1770365847925612714?s=20" rel="nofollow">revealed</a> that these ETFs saw a record net outflow of $326m.&nbsp; 
Crypto trader and analyst Rekt Capital also <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-price-crashed-65000/#:~:text=The%20flagship%20cryptocurrency%2C%20Bitcoin%2C%20dropped,Halving%2C%20which%20is%20fast%20approaching.">suggested</a> that Bitcoin is already in the ‘Final Pre-Halving Retrace.’ Therefore, significant price corrections can be expected ahead of the Halving event, which is set to take place in April.&nbsp; 
At the time of writing, Bitcoin is trading at around $63,000, down in the last 24 hours, according to <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="nofollow">data</a> from CoinMarketCap.&nbsp; 
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/WTf726nr/" alt="Bitcoin price chart from Tradingview.com" width="3286" height="1530">

Bitcoin Supply On Exchanges Hit 4-Year Low, But Why Is Price Crashing?

目錄

NewsBTC

在 2024年3月20日發表的其他文章

Tokens to Watch in Q2 2024 – Algotech (ALGT), Render Token (RNDR) and Avalanche (AVAX)

Trezor X Account Hacked: How Much Was Taken In The Fake Crypto Presale?

Bitcoin Price Prediction: MicroStrategy Boosts BTC Ownership To 1% Of Supply As This Eco-Friendly...

World’s First Humanoid Robot Sophia Takes Center Stage: Join the Global AI & Global Blockchain Sh...

Recognizing Excellence: Unlock Blockchain’s Top 20 Performing CEOs in MENA’s Crypto Space in 2023

Starknet Announces April Airdrop for Immutable X Users and ETH Stakers

訂閱免費電子報，每天收取加密貨幣最新動態！