#BTCWhalesMoveToETH Withdrawals from ETFs and uncertainty about the drop in interest rates in the U.S. collapse the 'fair price' of Bitcoin

An analysis by Ecoinometrics associates the drop in Bitcoin with withdrawals from ETFs; if the trend persists, the asset's price could retreat to below $100,000.

Withdrawals from ETFs and uncertainty about the drop in interest rates in the U.S. collapse the 'fair price' of Bitcoin

Market Analysis

The withdrawals from Bitcoin ETFs recorded last week collapsed the 'fair price' of Bitcoin to $107,000, although the BTC/USDT pair is trading at $111,100 on the morning of this Monday, August 25.

The 'fair price' of Bitcoin

BTC

€94,627

is an indicator created by Ecoinometrics to measure investor appetite based on the relationship between inflows and the market value of Bitcoin.

Federal Reserve, Bitcoin Price, Bitcoin Analysis, Bitcoin ETFs

Chart of Bitcoin price and inflows in ETFs with 'fair price'. Source: Ecoinometrics

The obvious trend at this moment indicates that investors are taking profits after the new all-time high recorded on August 14. According to Ecoinometrics, the 10% drop since then is directly associated with this movement:

"We have already observed situations where Bitcoin fell, but institutional flows remained strong, setting the stage for a rapid recovery. This is not one of those moments. Since the end of last week, ETF flows have turned negative."

The 'fair price' lower than the spot market value of Bitcoin suggests that the short-term trend is down. If it persists, "there is room for drops below $100,000," states the latest market bulletin from Ecoinometrics.

"When ETF flows turn negative, this signals consistent capital outflow, and not just the traders' reaction to price swings.