In the midst of Bitcoin’s price decline, the spot Bitcoin ETF market has been experiencing a period of gloom. However, Ki Young Ju, a well-known analyst and CEO at CryptoQuant, has made a bold prediction of a potential resurgence in the spot Bitcoin ETF market.
In a recent post on X, Ki Young Ju shared that despite the ongoing decline in BTC price, netflows for spot Bitcoin ETFs could actually increase. The analyst based this prediction on historical netflow trends, noting that demand for Bitcoin ETFs tends to surge when the cryptocurrency reaches certain support levels.
According to data from BitMEX Research, BTC ETFs have seen negative netflows in the last four trading sessions. This has been accompanied by significant outflows from Grayscale’s GBTC and record-low inflows for other ETFs, particularly the market leaders BlackRock’s IBIT and Fidelity’s FBTC.
Ki Young Ju pointed out that new BTC whales, especially ETF buyers, have an average cost basis of around $56,000. This suggests that major Bitcoin holders, particularly ETF investors, typically acquired Bitcoin at an average price of $56,000.
Based on this trend, the cryptocurrency expert expects a substantial influx of funds into the spot Bitcoin ETF market if BTC manages to reach the mentioned price threshold.
Data from Cointelegraph Markets Pro shows that Bitcoin’s price has been fluctuating between $62,000 and $68,000 over the past week. However, Ki Young Ju believes that a decline is possible, as corrections usually result in a maximum drop of 30%. With BTC’s recent peak at $73,750, the analyst forecasts that the price could potentially drop as low as $51,000.
In the past 48 hours, BTC’s price has experienced a 13% drop from its new all-time high of $73,835, briefly trading near $60,000. This correction was triggered by overheated market conditions, which analysts have referred to as a “pre-halving retrace” ahead of the upcoming Bitcoin halving event that is approximately 30 days away.
A report by CryptoQuant suggests that the Bitcoin bull cycle is far from over, as there are relatively low levels of investment flows from new investors and price valuation metrics are still below levels seen in previous market peaks.
Additionally, the upcoming Bitcoin halving event is expected to be a major catalyst that will boost the price of BTC and initiate a parabolic uptrend. According to CoinMarketCap’s halving countdown, the next halving event is less than 31 days away.
In related news, the CEO of Trezor, a popular cryptocurrency hardware wallet, has expressed concerns that Bitcoin ETFs make Coinbase a target for hackers and governments.