Spot BTC ETF demand wavers as Bitcoin price drops below $62K

Bitcoin (BTC) experienced a 3% price drop on April 16 as crypto investors turned cautious due to a decline in ETF demand. According to data from Cointelegraph Markets Pro and TradingView, BTC hit a low of $61,709 on Binance shortly after the Wall Street opening. The decline in Bitcoin mirrored the drop in U.S. stock indexes, as the U.S. dollar Index reached a six-month high of 106.17.
On April 15, data from Farside Investors showed that spot Bitcoin ETFs experienced net outflows of $36.7 million. Ki Young Ju, the founder and CEO of CryptoQuant, noted that Bitcoin ETF demand has been stagnant for four weeks. Farside Investors data also revealed that only Grayscale and BlackRock had inflows on April 12 and April 15, while all other funds had no activity.
CryptoQuant’s latest report indicated that demand growth for Bitcoin from ETFs in the U.S. has slowed down. Despite the decline in BTC price, Bitcoin whales are holding onto their coins, according to a previous report by Cointelegraph. Young Ju’s observations support this, as accumulation has increased despite reduced spot Bitcoin flows.
The news of a spot Bitcoin ETF approval in Hong Kong did not trigger a pre-halving rally in BTC price. Michael Gu, the founder of Boxmining, suggested that Hong Kong spot Bitcoin ETFs serve as a testing ground for Chinese investments. In order for BTC price to reach new all-time highs, it needs to consolidate before making a convincing run, according to crypto analyst Tom Dunleavy.
Position trader Bob Loukas also analyzed various indicators on the daily chart and predicted a consolidation period for BTC price over the next two months before a potential surge. It should be noted that this article does not provide investment advice, and readers should conduct their own research before making any financial decisions.