🔥BTC at $38K?🔥

Bitcoin rushes to USD 40,000: What is the reason?

Key facts:

✅ Bitcoin's #ETF spot recorded its worst day of net flow.

✅ GBTC continues to record daily multi-million dollar outflows.

The price of #bitcoin (BTC) has seen multiple pullbacks to the $40,000 area in the last 24 hours. In this way, the market is showing weakness to maintain the price above USD 41,000.

So far in the last 24 hours, bitcoin has recorded a drop of almost 5%. This occurs after, during the week, the price remained mostly sideways around USD 42,000

The reason for this drop has to do with the net flow that the bitcoin spot exchange-traded funds (ETFs), which were launched a week ago, have been receiving.

Yesterday was the worst day for net money flow of funds to purchase BTC. Precisely, together, they had outflows of USD 134 million.

This was primarily driven by the #grayscale (GBTC) ETF, which sold $582 million worth of bitcoin due to outflows. Meanwhile, the rest of the ETFs together recorded inflows of USD 447 million to buy the digital currency, a figure that did not exceed GBTC sales. This supply exceeding demand caused downward pressure on the price.

Furthermore, the daily outflows of #GBTC and inflows into the other ETFs reflect that a capital rotation is taking place, that is, there is not much new demand entering these financial instruments. This lack of significant demand for these financial instruments means that the price of bitcoin does not rise.

Summary:

In our view, due to capital allocation, the early days of ETFs will be bearish.

Stay alert, we will be very attentive to how the #Criptomonedas market evolves this week! 👀💪