{"id":347749,"date":"2024-07-23T14:49:18","date_gmt":"2024-07-23T13:49:18","guid":{"rendered":"https:\/\/coinfomania.com\/?p=347749"},"modified":"2024-07-23T14:49:25","modified_gmt":"2024-07-23T13:49:25","slug":"are-530m-bitcoin-etf-inflows-a-blessing-or-caution","status":"publish","type":"post","link":"https:\/\/coinfomania.com\/are-530m-bitcoin-etf-inflows-a-blessing-or-caution\/","title":{"rendered":"Are $530M Bitcoin ETF Inflows a Blessing or Caution?"},"content":{"rendered":"\n<p>A popular trader, Skew, has sounded the alarm, warning of a potential local BTC price top following a whopping $530 million inflow into Bitcoin exchange-traded funds (ETFs). But is this surge a harbinger of bullish momentum or a potential trap?&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-skew-s-observed-pattern-nbsp\">Skew&#8217;s Observed Pattern&nbsp;<\/h2>\n\n\n\n<p>Bitcoin has become a popular choice for investment, which has sparked renewed interest in Bitcoin ETFs. In particular, the BlackRock iShares Bitcoin Trust (IBIT) <a href=\"https:\/\/heyapollo.com\/bitcoin-tracker\/flows\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">received<\/a> a large investment of $523 million, all on its own, on June 22.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">\ud83d\udea8 BlackRock buys 7759 BTC ($523m)!!<br><br>HUGE \ud83d\ude80 <a href=\"https:\/\/t.co\/RgFXSSjOt0\">pic.twitter.com\/RgFXSSjOt0<\/a><\/p>&mdash; Julian Fahrer (@Julian__Fahrer) <a href=\"https:\/\/twitter.com\/Julian__Fahrer\/status\/1815532825619435941?ref_src=twsrc%5Etfw\">July 22, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>However, history warns us to tread cautiously. Large inflow days have historically preceded BTC price sell-offs.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Another large inflow day\ud83d\udc47<a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> <br>As bullish as this is each other time IBIT reported mid &#8211; high 9 fig inflow days it occurred around market supply zones <br><br>somewhat a headline curse lol<br><br>So in terms of actually trading this, the obvious part is now does the market sustain this\u2026 <a href=\"https:\/\/t.co\/qdGwMAvVjl\">https:\/\/t.co\/qdGwMAvVjl<\/a> <a href=\"https:\/\/t.co\/iZ921tpKHW\">pic.twitter.com\/iZ921tpKHW<\/a><\/p>&mdash; Skew \u0394 (@52kskew) <a href=\"https:\/\/twitter.com\/52kskew\/status\/1815555464819798184?ref_src=twsrc%5Etfw\">July 23, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>As Skew aptly put it, &#8220;<em>As bullish as this is, each other time IBIT reported mid-high 9-figure inflow days, it occurred around market supply zones<\/em>.&#8221; In other words, when the going gets tough, the tough might be getting out, or so it seems.<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-us.googleusercontent.com\/docsz\/AD_4nXe_xIFk8pIOFRXc1zwTigU_JTHS4W6RHKjrYngN3-uGSnXvVHzRUCN6kPUvZQF3RNw31DWGNOo09OZDYZJLhqiDsM1VqyPBcT1oc6OPI6Ehf9F-0sbsKeLnbnjZn8146em3UWe3wxRvKDSGzhQByQRYg2iik7b10QXzRJ4JNSuB1g5HOUTr3A?key=B-BQHB6uvqvWc0yQALOScA\" alt=\"\" style=\"width:596px;height:auto\" \/><\/figure>\n\n\n\n<p><em>BTC\/USDT Chart with peak IBIT returns. Source: Skew<\/em><\/p>\n\n\n\n<p>Notwithstanding, this isn\u2019t the first time we\u2019ve seen this pattern. <a href=\"https:\/\/farside.co.uk\/?p=997\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">According<\/a> to data from UK-based Farside Investors, the July 23 netflow for US spot ETFs was 533.6 million, the most since March. Back in March, BTC hit its all-time high, and the market dipped by nearly 25% shortly. It seems that when the ETF inflows rise, the Bitcoin price falls. It\u2019s a classic case of \u201c<em>what goes up must come down<\/em>.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-us.googleusercontent.com\/docsz\/AD_4nXdAGpifB8veUq0GxaEJGPEY0llv98wwEA539fAAfqd6kXWZYfuozldAkhrvkkdXlSLZDdDJpjZvibRU4R7dd6w_guQ7pQCG0kAypvEZ_GGUysZ_CGaOHfqTEAjNBpY7BisbbPxZ1phL_WJoEoKl1o0yLBjtSTBb2u0Hh9ztBWHHx3ft6F9yfw?key=B-BQHB6uvqvWc0yQALOScA\" alt=\"\" style=\"width:546px;height:auto\" \/><\/figure>\n\n\n\n<p><em>US spot Bitcoin ETF netflows (screenshot). Source: Farside Investors<\/em><\/p>\n\n\n\n<p>But it\u2019s not all doom and gloom. Skew highlights \u201c<em>consistent<\/em>\u201d demand for spot, spot takers absorbing supply, and overall seller absorption as key requirements to sustain current levels and further upside. In other words, if the market can maintain this demand and momentum for higher prices, we might just weather the storm.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-sustaining-demand-and-momentum\">Sustaining Demand and Momentum<\/h2>\n\n\n\n<p>The big question now is whether the market can keep up with the demand and continue to increase in price. To figure this out, we need to think about a few things. Here are two important ones.<\/p>\n\n\n\n<p>First, there needs to be a steady demand for Bitcoin. Luckily, we\u2019ve seen people buying Bitcoin and taking up the supply, which is a good sign for stabilizing prices.<\/p>\n\n\n\n<p>Second, Bitcoin needs to be able to handle the pressure from sellers. If Bitcoin can deal with people selling off their Bitcoin, it might keep going up in price.<\/p>\n\n\n\n<p>While all this is happening with Bitcoin and ETF investments, <a href=\"https:\/\/coinfomania.com\/secs-greenlight-of-9-ethereum-spot-etfs-for-trading-today-might-see-a-60-eth-price-uptick-contrasting-btc\/\">Ethereum (ETH)<\/a> has taken a different path. US regulators have given the green light, and Ethereum ETFs started trading on July 23.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-us.googleusercontent.com\/docsz\/AD_4nXdKxovSw6XJPcNDqky62ntE80c13Kmgfvhcah9P9Va-u3-zJQM0nV-1_Zi6nD7bciyRM8P8isNNcZ6NwFuSh4mOshHf0-iNDSN9UYT4Hoj5y0myw7UKyWr18_nYyS6cfqc6nX-GF5UZoV2H3lSmqZMLFOqJGq67cNTmC41BBXHsxryQkv7z7g?key=B-BQHB6uvqvWc0yQALOScA\" alt=\"\" style=\"width:572px;height:auto\" \/><\/figure>\n\n\n\n<p><em>ETH\/USD 1-hour chart. Source: TradingView<\/em><br>Surprisingly, ETH&#8217;s response has been muted. Unlike Bitcoin&#8217;s explosive rally before its ETF launch, ETH has remained relatively flat, with just a 1.5% gain over the past week. Some analysts view this lack of enthusiasm as a negative reaction, suggesting that the market is waiting to see who &#8220;<em>sells the news<\/em>&#8221; first.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A popular trader, Skew, has sounded the alarm, warning of a potential local BTC price top following a whopping $530 [&hellip;]<\/p>\n","protected":false},"author":69,"featured_media":347752,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1812,5],"tags":[54,428],"ppma_author":[2366],"class_list":["post-347749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","category-crypto-news","tag-bitcoin","tag-bitcoin-etf"],"acf":[],"authors":[{"term_id":2366,"user_id":69,"is_guest":0,"slug":"ayanfe","display_name":"Ayanfe Fakunle","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/93a3a58ce298159a3ebee896ecd6a734?s=96&r=g","first_name":"Ayanfe","twitter":"","instagram":"","linkedin":"https:\/\/www.linkedin.com\/in\/ayanfe","user_url":"","last_name":"Fakunle","facebook":"","description":"Ayanfe Fakunle is an expert content writer, journalist, and editor at the intersection of crypto, finance, and web3. His mission is to make crypto accessible, engaging, and exciting for everyone."}],"_links":{"self":[{"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/posts\/347749"}],"collection":[{"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/users\/69"}],"replies":[{"embeddable":true,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/comments?post=347749"}],"version-history":[{"count":1,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/posts\/347749\/revisions"}],"predecessor-version":[{"id":347767,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/posts\/347749\/revisions\/347767"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/media\/347752"}],"wp:attachment":[{"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/media?parent=347749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/categories?post=347749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/tags?post=347749"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/ppma_author?post=347749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}