(Kitco News) – Volatility remains high in the crypto market, but Bitcoin (BTC) is showing resilience after the top crypto briefly dipped below $69,300 in early trading on Tuesday.
Data provided by TradingView shows that an attempt by bulls to push past $71,500 was rejected by bears, who then attempted to smash its price back below $69,000, only to be rebuffed by bulls at $69,281. In the end, Bitcoin returned to support near $71,300 for an increase of 0.5% on the 24-hour chart.
BTC/USD Chart by TradingView
Bitcoin’s sideways price action below its all-time high comes as flows into the ETFs have slowed significantly. Last week saw five consecutive days of outflows totaling $887.6 million, with Grayscale accounting for all but $10.2 million of the decline.
Cointucky Derby update for the #bitcoin ETFs. Last week was -$888 million for the group. Outflows were likely related to bankruptcy -- they were mostly Gemini/Genesis selling. *Expecting* that to slow over the next ~week. They had a total of ~$3.9 bln of $GBTC to sell. pic.twitter.com/qXiog228z8
— James Seyffart (@JSeyff) March 25, 2024
Monday saw the trend of outflows come to an end, but just barely, as the ETFs recorded net inflows of $15.4 million, thanks in large part to inflows of $261.8 million into Fidelity’s FBTC, which helped offset the $350.1 million in outflows from GBTC. Year-to-date, the ETFs have recorded $11.29 billion in net inflows.
“While nearly 1 Billion dollars of ETF outflows last week certainly brought retracement to the market, the price volatility is well within normal ranges for Bitcoin,” said Michael Silberberg, Head of Investor Relations at Alt Tab Capital. “While the initial record-breaking inflows may begin to slow, it is worth remembering that these ETFs have just launched, and it will take a while for RIAs, marketers, and wealth managers, in general, to be allocated into the space. I believe this is just the first inning in a very long path of growth for this asset class.”
If the crypto rumor mill is correct, things could soon pick back up for the ETFs. Some sources are saying that Morgan Stanley is preparing to offer access to Bitcoin ETFs within the next two weeks.
UPDATE: several sources confirming that @MorganStanley is set to approve #Bitcoin ETF's on their platform in the next two weeks.
- sources are from inside $MS, inside $BTC ETF firms, and legal insiders adjacent to both.
- @MorganStanley holds more than $1.5T in client assets.— Andrew (@AP_Abacus) March 26, 2024
This, combined with the announcement that the London Stock Exchange will list Bitcoin and Ethereum (ETH) exchange-traded notes (ETNs) in May, suggests that the ETF inflows may soon pick up again, and Bitcoin’s price could follow suit.
According to X user Max, founder of BB Wealth Management, an emerging fractal pattern suggests that this sideways price action is but a temporary pause before an exponential price increase.
No cycle is ever the same, but we can certainly draw inspiration from past $BTC moves.
Pretty "coincidental" that in March 2017, #Bitcoin swept the previous cycle ATH, pulled back, & then went on to rocket upward upon the Q2 open. Perhaps the same things happen 7 years later... pic.twitter.com/Hig1mfOb86— Max (@MaxBecauseBTC) March 26, 2024
