CryptoQuant analyst commented on the current situation in the cryptocurrency market and the fate of spot Bitcoin ETFs.
While the cryptocurrency market has been experiencing turbulent days, especially in the last 1 week, a statement came from CryptoQuant. The analyst’s statement expressed that the market’s tension is caused by selling pressure from profitable investors and decreased net inflow to spot Bitcoin ETFs.
In addition, the analyst emphasized that the selling pressure from profitable investors is not very intense, and highlighted that if the inflows to spot Bitcoin ETFs revive, the market can easily recover. Spot Bitcoin ETFs had caused concern for investors by seeing net outflows over the past 3 days.
On the other hand, in case of the outflows from spot Bitcoin ETFs and the slowing down of BlackRock’s purchases, the analyst said that long-term Bitcoin investors might start selling and things could go wrong:
This week’s situation shows that BlackRock’s net Bitcoin inflows have consistently reached record low levels. If this is a temporary situation, there may be no problem. However, if this situation continues, there is a possibility that long-term holders will start depositing Bitcoin to exchanges as they did before.
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