The spot Bitcoin ETF market has been dismal recently amid the decrease in Bitcoin’s price. Prominent analyst and CEO of CryptoQuant Ki Young Ju has forecast a potential rebound in the spot Bitcoin ETF market despite these ongoing dropping net flows.
On March 22, Ki Young Ju said on X that spot Bitcoin ETF netflows might increase even if the price of BTC keeps falling. The analyst observed that demand for Bitcoin ETFs typically increases as the cryptocurrency traces to specific support levels using data from previous netflow trends.
The last four trading sessions have seen a negative flow for these BTC ETFs, according to data from analytics firm BitMEXResearch. This negative flow has been characterized by notable outflows of GBTC from Grayscale and record low inflows from the other ETFs, primarily the market leaders BlackRock’s IBIT and Fidelity’s FBTC.
According to Young Ju, new Bitcoin whales, particularly those that own ETFs, have an on-chain cost basis of about $56,000. This suggests that major Bitcoin owners, especially those who participate in exchange-traded funds (ETFs), generally bought their coins for about $56,000 on average.
If BTC hits the specified price threshold, the bitcoin quantitative expert predicts large inflows into the spot Bitcoin ETF market in accordance with this pattern.
Over the previous week, the price of Bitcoin has reportedly varied between $62,000 and $68,000, according to statistics from Cointelegraph Markets Pro. Nonetheless, Young Ju says that considering that corrections usually result in a maximum decrease of thirty percent, such a decline is reasonable. Following its most recent peak of $73,750, the analyst projects that the price of Bitcoin may go as low as $51,000.
Still, Bitcoin’s price fell 13% from its new all-time high of $73,835 over the last 48 hours, momentarily trading close to $60,000. In what observers have dubbed a “pre-halving retrace,” the market conditions that were too hot to handle led to the correction, which came just 30 days before the Bitcoin halving.
The relative lack of fresh investor investment flows and price valuation indicators that remain below levels observed in previous market peaks, according to an analysis by CryptoQuant, indicate that the Bitcoin bull cycle is still ongoing.
The next Bitcoin halves event, which is less than 31 days away, according to CoinMarketCap’s halving countdown, is a big factor predicted to support BTC price and usher in a parabolic uptrend.