Bitcoin falls to $66.5K, Bitget senior analyst Ryan predicts $62K-$90K in April.
Bitcoin (BTC) failed to hold its ground. The upward momentum gained last week, At the time of writing, its value has dropped significantly to $66,550. The decline has fueled optimism among investors for a continued uptrend, with the cryptocurrency nearly reaching its recent high of $71,000.
Recent market analysis has shown a strong correlation between Bitcoin price movements and activity related to spot Bitcoin ETFs. The ebb and flow of funds flowing into and out of these ETFs, especially since early 2024, has played a pivotal role in shaping investor behavior and, by extension, market stability. There was a notable decline in the value of Bitcoin in early 2024, a trend largely driven by fluctuations in ETF activity, which has been pointed out as a significant factor in the recent decline in cryptocurrencies.
April 1 emerged as an important day for market analysts following a period of reduced Bitcoin ETF inflows.
A case in point is the drop in BTC price to $64,000 on March 22nd, coinciding with the sale of Genesis GBTC assets the week before. Despite continued inflows to nearly all funds, daily inflows were insufficient to offset significant outflows from the Grayscale Bitcoin Trust. (GBTC).
This has led to closer examination of macroeconomic indicators and ETF-specific movements to gauge future market trends.
Recent data showed inflows of $166.9 million into the IBIT ETF, in stark contrast to outflows of $302.6 million from GBTC, showing a worrying gap and hinting at a potential shortfall in trade-ins.
The overall ETF landscape further revealed a variety of fund movements, including smaller inflows and outflows across multiple companies. Data from April 1 hinted at net outflows along with market expectations of further figures from Fidelity, which are expected to further impact market dynamics.
Confirmation of possible net outflows through ETF channels, combined with awaited statistics from Fidelity, could lead to losses for the market early in the week. These ETF outflows are already impacting demand on cryptocurrency exchanges, with analysts predicting that the price of BTC could fall below $69,000.
Investors are closely monitoring ETF inflows and outflows as a key indicator of Bitcoin price movements. Despite a decline in the trading volume of famous funds such as Grayscale, Fidelity, and Blackrock, market anxiety is growing due to large-scale fund outflow from GBTC. Nonetheless, the potential influx of funds from Fidelity may cause FOMO (fear of fear) despite the uncertainty of its overall impact on the market.
Ryan Lee, senior analyst at Bitget Research It provided a forecast for Bitcoin performance in April, estimating a range between $62,000 and $90,000.
This forecast is based on the Spot Bitcoin ETF’s continued role in attracting inflows and the upcoming Bitcoin market biennial halving in April.
This halving event is expected to significantly reduce BTC’s daily issuance, and continued buying on Wall Street could potentially lead to the start of an early bull market.
According to Lee, April will be a critical month in determining trends for the coming months.
Also Read: Why Bitcoin Falls 15% from All-Time Highs: Expert Insights on the “Risk Zone” and Other Factors
