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Bitcoin trader warns of local BTC price top after $530M ETF inflows

News Feed - 2024-07-23 04:07:41

William Suberg1 hour agoBitcoin trader warns of local BTC price top after $530M ETF inflowsBTC price “profit taking” has resulted from large ETF inflow days in the past, while both Bitcoin and Ether shrug off the latter’s ETF launch day.1098 Total views1 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin risks a spate of “profit taking” and price weakness, even as institutional buying surges.


In his latest analysis on X on July 23, popular trader Skew warned of a “headline curse” as the United States spot Bitcoin (BTC) exchange-traded funds (ETFs) took in over $500 million.ETF flows not enough to sustain BTC price upside


Bitcoin ETF popularity is enjoying a renaissance this week, but the good times are far from guaranteed to stay, Skew said.


After the largest US spot ETF — the BlackRock iShares Bitcoin Trust (IBIT) — saw $526 million in inflows alone on June 22, he cautioned that such large inflow days have historically preceded BTC price sell-offs.


“As bullish as this is each other time IBIT reported mid-high 9 fig inflow days it occurred around market supply zones,” he summarized.BTC/USDT chart with peak IBIT inflows. Source: Skew


According to data from sources including the United Kingdom-based investment firm Farside Investors, the July 23 netflow total for the US spot ETFs was 533.6 million — the most since March.US spot Bitcoin ETF netflows (screenshot). Source: Farside Investors


In March, BTC/USD hit its all-time high, which still stands, with the market dipping by nearly 25% in the interim.


“So in terms of actually trading this, the obvious part is now does the market sustain this demand & momentum for higher prices,” Skew continued.


He highlighted “consistent” demand for spot, spot takers absorbing supply and overall seller absorption as key requirements to sustain current levels and further upside.


Bitcoin traded at around $66,550 at the time of writing, down 1.5% on the day, per data from Cointelegraph Markets Pro and TradingView.BTC/USD 1-hour chart. Source: TradingViewETH price flat with hours to ETF launch


Other concerns meanwhile place the Ethereum ETFs in the spotlight.


Related: Bitcoin trader sees 2 months to all-time high as China cuts key rates


Approved by US regulators to begin trading on July 23, spot Ether (ETH) ETFs have so far failed to spark an anticipatory run-up in price for the largest altcoin by market cap.


Instead, ETH/USD is up just 1.5% over the past week and flat on the day, marking a significant contrast to Bitcoin in the days before its ETFs went live in mid-January.ETH/USD 1-hour chart. Source: TradingView


“The lack of positive reaction is a negative reaction,” trading firm QCP Capital wrote in part of its latest bulletin to Telegram channel subscribers.“Market seems to be seeing who folds first to ‘sell the news.’”


As Cointelegraph reported, some believe several months are required to gauge real demand for spot Ether ETFs.


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Altcoin# Ethereum# Bitcoin Price# Markets# Ether Price# Ethereum ETF# Bitcoin ETFAdd reaction