Bitcoin ends the week on a rather bearish note after a massive crash in the early hours of Friday. The crash pushed the price below $66,000, dragging the rest of the crypto market down with it. The reason for this crash can be traced back to what caused the bull run in the first place: Spot Bitcoin ETFs.
Find out how Bitcoin ETF net flows are suffering
After a long period of what seemed to be just inflows for Spot Bitcoin ETFs across the space, institutions appear to be scaling back their purchases this week. Data aggregation platform Spot On Chain revealed that net inflows into these ETFs have fallen dramatically in recent days.
The decline was first noticed on Wednesday, March 3, when daily net inflows had fallen by 38%. Interestingly, the second largest daily inflows for these Spot BTC ETFs occurred on Wednesday. But now that outflows are increasing at the same time, net inflows are starting to decline.
This trend continued on Thursday, March 14, when net inflows into the Spot ETFs registered another massive crash. This time it fell by 80.6% compared to the day before, when there was already a drop of 38%. As a result, the ETFs had their worst trading day in over a week.
BTC #ETF Net inflow March 13, 2024: +$684 million
• Net inflows fell 38.3% from the previous day, but remain the second largest daily inflows since the ETF’s inception.
• Cumulative total net inflows after 43 trading days are $11.82 billion.
• BlackRock ($IBIT) now has… https://t.co/hziFc5Uy4v pic.twitter.com/DGsnfVecZF
— Spot On Chain (@spotonchain) March 14, 2024
Nevertheless, the ETFs are still seeing positive inflows, indicating that outflows continue to decline compared to inflows. However, if outflows continue to rise, Bitcoin could suffer immensely, exemplified by the market crash caused by Grayscale Bitcoin Trust’s outflows.
BTC price struggles to recover
After falling to $65,600. Bitcoin price is struggling to recover from the flash crash. There was rapid buying of the dip, indicating that BTC is in high demand at low prices. This demand may have pushed the price up, causing it to rise once more before being rejected at $68,700.
Currently, the BTC price is circulating around $66,500, with the $68,000 level proving to be the next major resistance for the price. But even if the crypto could beat this level, there is still the rising resistance at $68,700, making it a key resistance level to beat.
The crash has caused Bitcoin’s price to fall by more than 8% in the past day, dropping its market capitalization to $1.33 billion. This crash has also proven damaging to altcoins, with Ethereum, Dogecoin and Cardano seeing an average drop of 10%.
BTC price at $67,700 | Source: BTCUSD on Tradingview.com
Featured image from Forkast News, chart from Tradingview.com
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