Outflows from United States spot Bitcoin exchange-traded funds (ETFs) have surged to $1.3 billion over the past two weeks, correlating with a decline in Bitcoin’s price.
Data from Farside Investors shows that Bitcoin ETFs saw a total outflow of $1.298 billion, with Grayscale experiencing the highest outflow of $517.3 million during this period.
In contrast, BlackRock’s Bitcoin ETF was the only one to report positive inflows, attracting $43.1 million over the same timeframe.
Bitcoin’s price has dropped 11.6%, from $69,476 on June 10 to $61,359, according to TradingView data.
This recent trend of outflows is the worst since April, when Bitcoin ETFs recorded net outflows of over $1.2 billion from April 24 to early May.
Jonathan de Wet, chief investment officer at digital asset trading firm ZeroCap, shared with Cointelegraph that the broader crypto market is still struggling.
He predicts Bitcoin’s price may drop to its “key support” level of around $57,000 in the coming weeks due to Mt. Gox creditor repayments.
“BTC and ETH are actually holding up surprisingly well given the rest of the market, with key support at 63,000 and 3,400 respectively, and still clearly within the price range over the past few months,” de Wet said.
Concerns about further downward pressure have been echoed by many market analysts.
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They point to Bitcoin sales by the German government and the nearly $9 billion in BTC from Mt. Gox creditor repayments expected in July as major contributing factors.
De Wet believes that while Bitcoin and other cryptocurrencies might face additional declines in the short term due to these repayments, the long-term outlook remains positive.
“Medium to long-term we are constructive given the ETH ETF launch expected easing bias toward the end of 2024 […] before actual easing in 2025.”
However, some analysts argue that the impact of Mt. Gox creditor repayments may not be as severe as anticipated.
eToro market analyst Farhan Badami told Cointelegraph that Bitcoin often prices in significant market events ahead of time.
He expects Bitcoin’s price to stabilize and potentially rally to new all-time highs in the coming months. “Within the next few weeks, it’s possible we will be range-bound between $60-70K USD,” Badami said.
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