CryptoQuant CEO predicts potential increase in demand for Bitcoin ETFs amid price decline.

According to CryptoQuant CEO Ki Young Ju, there could be a resurgence in the spot Bitcoin exchange-traded fund (ETF) market if the price of BTC continues to decline. Young Ju analyzed historical net flow trends and noted that demand for Bitcoin ETFs typically increases when the cryptocurrency reaches certain support levels. Data from BitMEX Research shows that spot BTC ETFs have experienced negative net flows in the last four trading sessions, with outflows from the Grayscale Bitcoin Trust ETF and decreasing inflows to other BTC ETFs. Young Ju predicts that if Bitcoin drops to around $56,000, there will be significant inflows to the ETFs, especially from new BTC whales who have an on-chain cost basis of $56,000. The price of BTC has been fluctuating between $62,000 and $68,000, and Young Ju suggests that a further decline is possible, with a maximum drop of around 30% to approximately $51,000. The recent correction in Bitcoin’s price was attributed to overheated market conditions ahead of the Bitcoin halving event in April. However, a report from CryptoQuant indicates that the Bitcoin bull cycle is not yet over, as there is a low level of investment flows from new investors and price valuation metrics are still below previous market tops. The upcoming Bitcoin halving event has historically driven the BTC price, leading to a parabolic uptrend.