Key Points
- Cryptocurrency investment products saw a fourth week of net outflows totaling $251 million, with Bitcoin ETFs accounting for $156 million.
- Despite Bitcoin’s net outflows, Ethereum and various altcoins experienced inflows, and Hong Kong’s Bitcoin and Ethereum ETFs saw over $307 million in net inflows in their first week.
A recent report revealed that cryptocurrency investment products experienced a fourth consecutive week of net outflows totaling $251 million. A significant portion of this was due to the outflows in Bitcoin ETFs, which amounted to $156 million.
The average purchase price of these ETFs since their inception is estimated to be around $62,200 per Bitcoin. A 10% drop in price below this level may have triggered automatic sell orders. However, Bitcoin ETF flows have turned net positive in the last two trading sessions. Notably, Grayscale’s GBTC registered net inflows for two consecutive days.
Net Flows Across Digital Assets
Bitcoin alone saw net outflows of $284 million, making it the only digital asset to register net outflows. Meanwhile, Ethereum broke its 7-week spell of outflows with $30 million in inflows last week.
Various altcoins also experienced inflows. Avalanche, Cardano, and Polkadot notably received $0.5 million, $0.4 million, and $0.3 million, respectively. The Hong Kong Bitcoin and Ethereum ETFs, which launched recently, saw more than $307 million in net inflows during their first week.
Bitcoin Price Action
Last week, Bitcoin’s price fell to $57,000 but bounced back as jobless data came in higher than expected. This led to anticipation that the Federal Reserve might announce rate cuts sooner than expected, potentially increasing liquidity inflows into the market and benefiting risk-ON assets like stocks and cryptocurrencies.
At the time of writing, Bitcoin is trading at $63,360 levels with a market cap of $1.245 trillion. Crypto analyst Michael van de Poppe suggests a continuation within the current range, emphasizing the importance of the $60.5K level. If this level holds, there’s a probable chance of a continuation towards $70K within the next 1-2 months.
The recent upward momentum in Bitcoin’s price has prompted options traders to reassess the likelihood of the cryptocurrency reaching the $100,000 mark at some stage this year. As a result, there has been a marked increase in demand for Bitcoin call options on prominent cryptocurrency exchange Deribit and over-the-counter (OTC) networks. These options are specifically targeting a surge to fresh highs, potentially surpassing $75,000 and even hitting $100,000.
