Bitcoin faces continued challenges that could lead to further price declines in the coming days, despite the initial success of several newly listed U.S. spot exchange-traded funds (ETFs).
Following the much-anticipated ETF listing last week, Bitcoin prices experienced a significant 15% drop. Outflows from Grayscale’s Bitcoin Trust product are reportedly contributing to the downward pressure.
While ETF volume data from BlackRock, Fidelity, and Bitwise surpassed $500 million this week, indicating demand from regulated funds and professional traders, there are lingering concerns. On-chain analysis firm CryptoQuant expressed caution, stating that various metrics and indicators suggest the price correction may not be over, or a new rally may not be imminent.
The CryptoQuant analysts noted, “Short-term traders and large bitcoin holders are still doing significant selling in a context of a ‘risk-off’ attitude. Additionally, unrealized profit margins have not fallen enough for sellers to be exhausted.” This contrarian view challenges the expectation that bitcoin ETF approvals would automatically lead to price gains.
Crypto traders echo these concerns, emphasizing that any upward strength is dampened by ongoing spot sales. Alex Kuptsikevich, FxPro senior market analyst, observed, “Bitcoin’s intraday range exceeded 3.5%, reaching the highs of the recent trading range triggered a methodical sell-off early on Wednesday. Intraday dynamics point to methodical selling near local highs, with bounces occurring sharply and with less volume. This is a cautionary observation but not a verdict on the cryptocurrency bull market.
