Bitcoin (BTC) experienced a 3% decline on April 16 as crypto investors adopted a risk-off approach due to stagnant demand for ETFs. According to data from Cointelegraph Markets Pro and TradingView, BTC reached a low of $61,709 on Binance shortly after the opening of Wall Street. Bitcoin followed the downward trend of U.S. stock indexes as the U.S. dollar Index reached a six-month high of 106.17.
On April 15, data from Farside Investors showed that spot Bitcoin ETFs experienced net outflows of $36.7 million. This decline in inflows into Bitcoin ETFs was highlighted by CryptoQuant’s founder and CEO, Ki Young Ju, who stated that Bitcoin ETF demand has stagnated for four weeks.
Further analysis by Farside Investors revealed that only Grayscale and BlackRock had flows into Bitcoin ETFs on April 12 and April 15, while all other funds recorded zero flows. Additionally, CryptoQuant’s latest report indicated a slowdown in demand growth for Bitcoin from ETFs in the U.S.
Despite the ongoing decline in BTC price, Bitcoin whales continue to hold onto their coins, as reported by Cointelegraph. Young Ju’s observations support this, showing an increase in accumulation despite the decrease in spot Bitcoin flows.
The news of spot Bitcoin ETF approval in Hong Kong did not lead to a pre-halving rally in BTC price. Boxmining founder Michael Gu suggested that HK spot Bitcoin ETFs serve as a testbed for Chinese money to enter the system.
Analyzing the current Bitcoin market structure, crypto analyst Tom Dunleavy noted that the percentage of realized value of long-term holders was over 40%, significantly higher than the historical 10% that has defined BTC tops. However, position trader Bob Loukas remains optimistic and expects a consolidation of BTC price over the next two months before witnessing a convincing run into price discovery.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.