Key takeaways:
Spot Bitcoin ETF inflows dropped over 90% from $3 billion to $228 million in four weeks.
While strong ETF inflows often drive Bitcoin rallies, recent data shows price movements can occur independently.
Despite short-term selling pressure, long-term BTC whale buying suggests a potential continuation of the BTC uptrend.
The Bitcoin (BTC) market posted a 90+% drop in spot BTC exchange-traded fund (ETF) inflows, falling from $3 billion in the last week of April to just $228 million this week.
Historically, a slowdown in ETF inflows has impacted BTC price, notably when daily inflows averaged over $1.5 billion for consecutive weeks. To understand the potential impact on Bitcoin, let’s examine four key periods of significant spot ETF activity and their correlation with BTC price movements.
Spot Bitcoin ETFs’ net inflows. Source: SoSoValue
In Q1 2024, from Feb. 2 to March 15, the spot ETFs