BTC Dips Below $66k as ETF Inflow Declines

TL;DR

• Bitcoin is down by 3% in the last 24 hours and is trading just above $65,500.

• Experts believe that it could dip to $59k if ETF inflows fell short of expectations.

BTC Losses 8% in Seven Days as ETF Mania Declines

Bitcoin, the world’s leading cryptocurrency by market cap, has been underperforming over the last few days. It is down by more than 8% in the last seven days and has now dipped below the $66k threshold.

At press time, Bitcoin’s price stands at $65,143, down by more than 3% in the last 24 hours. The poor performance can be attributed to the decline in spot Bitcoin exchange-traded fund (ETF) inflows over the last few days.

According to crypto analytics firm 10X Research, spot Bitcoin ETFs in the United States notched record inflows last week, resulting in BTC setting a new all-time high at $73,750. However, the analysts believe that weaker demand in the next day or so could trigger the next leg down for bitcoin's price.

Data obtained from Farside Investors shows that the 10 ETFs combined pulled in $2.6 billion in fresh funds in the five days ended March 15. However, the ETFs only booked $133 million and $198 million of net inflows on Thursday and Friday. Thus, resulting in BTC’s price performing poorly over the last few days.

In their report on Monday, Markus Thielen, founder of 10X wrote that,

“Bitcoin's price found short-term support at those levels and stabilized at $67,000, but the real test will come Monday and Tuesday, with bitcoin's correction potentially continuing if ETF inflows disappoint. While this is an unpopular narrative, it would be expected to see inflows slow down after prices experience significant intraday volatility. Based on our reversal indicators, a retracement to $59,035 appears more likely, offering better risk-reward entry levels, which would indicate another 10% drop from current BTC prices.”

With BTC underperforming, the other major cryptocurrencies are also trading in the red. Ether is down by 6% in the last 24 hours and is currently trading at $3,388 per coin. Meanwhile, SOL has lost 11% of its value while BNB is down by 7%. The total cryptocurrency market cap has declined below $2.5 trillion after losing 5% of its value in the last 24 hours.