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Amid growing institutional participation in Bitcoin, the sharp rise in ETF inflows over the past few days has caught the attention of traders and analysts alike.
Earlier today, a noteworthy analysis was posted by popular trader Skew on social media platform X. Spotlight Potential risk to Bitcoin amid current capital influx.
Skew pointed to a phenomenon he called the “headline curse,” noting that while the massive inflow of more than $500 million into spot bitcoin ETFs in the United States indicates growth, Institutional trustIt may also herald an imminent price correction.
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Record High Bitcoin ETF Flows Point to Market Shifts
The recent resurgence in popularity of Bitcoin ETFs, highlighted in particular by the BlackRock iShares Bitcoin Trust (IBIT), which alone saw $526 million inflows on June 22, brings with it a history of similar events that have often led to price sell-offs.
Bitcoin ETF Flows (USD Million) – 2024-07-22
Total net flow: 533.6
(Temporary data)Go: 526.7
FBTSC: 23.7
Betb:
RKB: 0
Bitcoin: 13.7
Ezbek: 7.9
Brrr: 0
Max: -38.4
BTCW: 0
GPT C: 0
Davey: 0For all data and notices, visit:https://t.co/4ISlrCgZdk
— Farside Investors (@FarsideUK) July 23, 2024
Such high flow days typically coincide with supply zones in the market, where sellers historically begin to return to the markets in search of weak prices, Skew said.
This increase in flows represents critical juncture For the cryptocurrency, this could pave the way for either a continued uptrend or a bearish pullback, depending on several market factors identified by Skew.
Skew also suggested in the analysis that maintaining the status quo upward momentum It is based on a few key indicators.
These factors include a persistent negative supply in the spot market, which involves limiting spot buyers taking advantage of lower prices, and the ability of spot buyers to continue bidding through the current spot supply, which is necessary to break through the five-month supply barrier.
In addition, vendor absorption plays a crucial role; it The basic aspect This is what must be addressed to reach new record levels.
Although the influx of money into Bitcoin is a positive sign, Skew points out that it will test the ability of the market at these crucial levels to keep demand strong and Absorbing selling pressure.
Another day of great flow👇Bitcoin
While this is positive, every time IBIT has reported medium to high flows of 9 percent, it has occurred in supply areas of the market.Kind of a curse of a headline.
So in terms of actually trading this, the obvious part now is whether the market can support this… https://t.co/qdGwMAvVjl pic.twitter.com/iZ921tpKHW
— Skew Δ (@52kskew) July 23, 2024
Imminent selling pressure
Speaking about the selling pressure, blockchain analytics firm Arkham Intelligence said: newly open The US government transferred $3.96 million from Bitcoin was hijacked from Coinbase.
In addition to this potential selling pressure, Arkham Intelligence, in another company, Report on XThe defunct cryptocurrency exchange Mt. Gox has also revealed that it may move to continue selling Bitcoin. Yesterday, the exchange conducted test transactions with $1 deposits to four separate Bitstamp deposit addresses.
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Despite this potential selling pressure, Bitcoin price is still holding above $65,000, with the asset currently trading at $66,981 at the time of writing.
Featured image created using DALL-E, chart from TradingView
