Analyst: Bitcoin could face sell off if ETF inflows slow
Bitcoin ETFs in the U.S. saw record inflows last week, but 10x Research reports that analysts caution about possible price declines if demand falters.
According to data from Farside Investors, the 10 ETFs collectively attracted $2.6 billion in new investments during the five days ending March 15. Most of these inflows occurred early in the week, with a surge from Monday to Wednesday driving BTC to new highs, nearly hitting $74,000.
However, the momentum waned towards the end of the week, with only $133 million and $198 million of net inflows recorded on Thursday and Friday, respectively. Consequently, Bitcoin (BTC) experienced a sharp decline over the weekend, slipping below $65,000.
While the price found support around $67,000, analysts such as 10x Founder Markus Thielen highlighted Monday and Tuesday as crucial. Thielen noted in a report that a correction continuation is possible if ETF inflows fail to meet expectations following recent market volatility.
The report stated, regarding potential scenarios, “While this is an unpopular narrative, it would be expected to see inflows slow down after prices experience significant intraday volatility.” Based on reversal indicators, Thielen suggested a retracement to $59,035, representing a 10% drop from current prices.
Despite the prospect of a deeper correction, the report remains optimistic about the broader crypto market’s trajectory.
“We can still argue that Bitcoin will climb materially higher during the next few months as this bull market will likely continue,” Thielen commented, highlighting the value of Bitcoin reclaiming the $70,000 threshold, which could pave the way for further gains.
