Bitcoin ETF Trading Volumes Hit 4-Week High But GBTC Outflows Escalate

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As a researcher with a background in finance and experience in cryptocurrency markets, I find the recent trend of Bitcoin ETF trading volumes intriguing. The surge in trading volume among US Bitcoin ETFs is noteworthy, especially following two consecutive days of net outflows totaling $200 million. This increase in trading activity could indicate a potential price turnaround for Bitcoin.

This week, the price of Bitcoin has experienced significant selling pressure, with Bitcoin ETFs reporting back-to-back days of withdrawals following 19 consecutive days of deposits. On Tuesday, June 11, US Bitcoin ETFs recorded a large withdrawal amounting to $200 million.

Bitcoin ETF Trading Volumes Spikes

As a researcher studying the cryptocurrency market, I’ve noticed an intriguing development based on data from Santiment. Bitcoin Exchange Traded Fund (ETF) trading volume has reached its peak since May 15. Among the top seven largest Bitcoin ETFs, this surge is noteworthy. This increase in volume could indicate a potential price reversal.

Bitcoin ETF Trading Volumes Hit 4-Week High But GBTC Outflows Escalate

On June 11, US Bitcoin exchange-traded funds (ETFs) collectively recorded a withdrawal of $200 million, representing the second day in a row with outflows. Grayscale’s GBTC specifically reported a daily outflow amounting to $121 million. As a result, the combined net asset value of these Bitcoin ETFs has dipped below $60 billion, now at approximately $59.227 billion.

BTC Price Rebound Ahead?

According to Santiment’s analysis, the drop in Bitcoin’s price below $67,000 has resulted in a surge of buying intentions expressed on social media. Previously, when sell calls have come closer to matching buy calls, this trend has frequently signaled growing anxiety and apprehension among investors, which in turn can trigger a bounce-back in the cryptocurrency market.

The Consumer Price Index (CPI) report for May 2024, which measures inflation, is due out later today at 12:30 pm UTC. Based on current predictions, the Year-over-Year (YoY) growth rate could be around 3.4%, or there might be a 0.3% rise Month-over-Month (MoM).

If the reported data falls short of what was anticipated, it could be an indication of decreasing inflation rates. This news might bring about optimism among cryptocurrency investors, as lower inflation can lead to increased buying power and potential price growth for digital currencies. Conversely, if the figures surpass expectations, it might suggest that inflation remains a pressing concern. In this scenario, investors could become more cautious, potentially leading to decreased demand and prices for cryptocurrencies.

Before the upcoming Federal Open Market Committee (FOMC) meeting, Bitcoin’s price is encountering robust selling pressure due to miner capitulation. If Bitcoin’s price falls below $67,000, there is a likelihood of experiencing a subsequent decline of 5-8% in the forthcoming weeks.

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2024-06-12 09:37