Bitcoin’s price has declined from $64k to $62k, accompanied by a net outflow of $217 million from US-listed Exchange Traded Funds (ETFs). An analyst predicts that the price could drop as low as $59k if it falls below $63.3k.
Following the halving event, Bitcoin’s price has remained relatively stable, staying above $60k and trading between $62k and $67k. However, the outflows from US spot Bitcoin ETFs have caused the price to fall to $62.9k, a decrease of 2% in the past 24 hours and 10% in the last 30 days.
This decline in price coincides with a daily net outflow of $217 million from US-listed ETFs, bringing the total outflows for the week to $244.49 million. The Fidelity Wise Origin Bitcoin Fund also experienced a drawdown of $23 million, the first since January 11. Grayscale reported an outflow of $417 million last week, along with a record 72-day streak of withdrawals.
The reason behind these outflows has been attributed to US inflation data, which suggests higher borrowing costs and improved Treasury yields. This has negatively impacted speculative assets like cryptocurrency.
Noelle Acheson, author of the Crypto “Is Macro Now” newsletter, commented on the situation, stating that BTC is likely to take a break as long as the macro mood supports higher yields.
JPMorgan has also noted a weakening correlation between Bitcoin ETF prices and inflows. In January, the correlation was 0.84, but it has dropped to 0.60 in a recent assessment. Analyst Ken Worthington explains that a reading above 0.70 indicates a higher correlation, while a number just below it is considered “moderately correlated.”
During the past 24 hours, liquidations have reached $60 million, with $13.48 million coming from Bitcoin. Of this amount, $6.17 million in long positions were liquidated, along with $7 million in short positions. Despite hopes for a bullish market recovery, analyst RektCapital predicts another downturn within the next two weeks, comparing the current correction to the pullback seen in 2016.
However, Bitcoin is expected to remain above $60k in the next two weeks and avoid falling into the post-halving danger zone until next month. Analyst Ali Martinez confirms this prediction, observing a sell signal on Bitcoin’s 12-hour chart and suggesting that it could fall to $61k or even $59k if it drops below $63.3k.