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Bitcoin Stable Above $64K While ETF Outflows Hit $200M

Apr 25, 2024
    BTC is trading above $64K even as outflows accelerate.The correlation between ETF outflows and BTC’s price is weakening.
As an observer with some experience in the cryptocurrency market, I find it intriguing that Bitcoin (BTC) is currently trading above $64K despite the significant acceleration in outflows from bitcoin exchange-traded funds (ETFs). This situation seems to defy the conventional wisdom that a strong correlation exists between ETF outflows and BTC prices.As a researcher studying the cryptocurrency market, I’ve observed that Bitcoin (BTC) is currently trading above $64K during the early afternoon hours in East Asia’s financial sector. Despite this price increase, there has been a noticeable uptick in outflows from Bitcoin exchange-traded funds (ETFs).

The data from the stock markets indicates that US-traded ETFs experienced a collective withdrawal of approximately $217 million on a single day. This adds up to a total outflow of over $244.5 million for the current week.

Bitcoin Stable Above $64K While ETF Outflows Hit $200M

In comparison, bitcoin is up around 3.7% in the last week.

Based on JPMorgan’s analysis, the relationship between bitcoin Exchange-Traded Fund (ETF) prices and inflows has become less synchronized. This correlation has declined from its peak of 0.84 in January to currently 0.60. This finding implies that the price trends of Bitcoin and spot Bitcoin ETFs have grown less interconnected, as reported by CoinDesk in February.

The substantial outflow of approximately $417 million from Grayscale’s Bitcoin ETF (GBTC) over the past week, as indicated by SoSoValue’s data, has drawn attention from traders due to its large scale. Surprisingly, Bitcoin prices continued to climb despite this significant outflow.

According to GoinGlass, the data for liquidations over the past 24 hours has remained relatively unchanged, with a total of approximately $60 million being liquidated. Out of this amount, Bitcoin accounted for around $13.48 million, while long positions were liquidated for about $6.17 million. Shorts, on the other hand, faced roughly $7 million in liquidation losses.

Currently, the CoinDesk 20 index (CD20), which represents the top 20 digital assets, remains unchanged with a value of 2,246.

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2024-04-26 10:35