Bitcoin Exchange-Traded Fund (ETF) inflows witnessed a staggering decline of 80.6% within 24 hours, marking a substantial shift in investor sentiment towards the cryptocurrency. The drop was reported by a cryptocurrency analytics platform, highlighting a net inflow of $133 million into Bitcoin ETFs. This sharp decrease comes after a record-breaking inflow of $1.05 billion just two days prior.
Impact on Bitcoin price
The decline in ETF inflows has a direct correlation with the movement of Bitcoin prices. Following the drop in inflows, Bitcoin’s price experienced a notable reversal, slipping below the $67,000 mark.
The cryptocurrency saw a 7% pullback from the previous day’s high, closing at $71,371. However, the downward trend persisted, with Bitcoin falling further to $66,767 in the early hours of Friday.
marked the second consecutive day of declining inflows into Bitcoin ETFs, signaling a potential shift in market sentiment. This decline follows a pattern observed over the past few trading days, where inflows have steadily decreased.
The drop in ETF activity has raised concerns among investors, with Bitcoin now facing the possibility of a second consecutive bearish day for the first time since late February.
The decrease in Bitcoin’s price has led to a surge in liquidation activity within the cryptocurrency market. Over the past 24 hours, a total of 193,431 traders were liquidated, resulting in a combined liquidation value exceeding $682 million.
The largest single liquidation order, valued at $13.30 million, occurred on the BTC-USDT-SWAP trading pair on OKX.
Current market outlook
As of the latest data, Bitcoin is trading at $68,416, with market analysts closely monitoring its price movement for potential support levels. The cryptocurrency’s struggle to maintain its current price levels has raised concerns among investors, with many eyeing key support levels established in early March.
Breaking below these support levels could further exacerbate Bitcoin’s downward trajectory, potentially leading to a decline towards the $64,000 mark.
The significant drop in Bitcoin ETF inflows, coupled with a decline in Bitcoin prices, has sparked uncertainty among investors in the cryptocurrency market. The consecutive days of declining ETF activity suggest a shifting sentiment towards Bitcoin, with traders closely monitoring its price movement for potential signs of further weakness.
As market participants navigate these fluctuations, all eyes remain on Bitcoin’s ability to sustain its current levels and avoid further downside pressure in the coming days.
By staying abreast of market developments and closely monitoring key support levels, investors can better position themselves to navigate the evolving landscape of the cryptocurrency market.
