Key Points
- Bitcoin (BTC) fell below $70,000 on April 9, with the ETF flows being significantly negative.
- Despite the negative flows, BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC) avoided losses.
On April 9, Bitcoin (BTC) experienced a drop, falling below the $70,000 mark. This came as a surprise to many as the decline in BTC price picked up speed just before the Wall Street open.
Bitcoin ETFs Face Challenges
The day saw Bitcoin reaching its lowest at $69,635 on Bitstamp, a 4.3% drop from the previous day’s local high. This was accompanied by an uncertain short-term sentiment. The first Wall Street trading session of the week did not meet the expectations of Bitcoin enthusiasts.
The US spot Bitcoin exchange-traded funds (ETFs) saw little capital intake. This, coupled with a $300-million outflow from the Grayscale Bitcoin Trust (GBTC), resulted in heavily negative net flows for the day. Data from various sources, including UK investment firm Farside, showed net outflows of just over $200 million.
Bitcoin Price Targets
Despite the negative flows, the two largest ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC), managed to avoid losses. They maintained a continuous inflow streak.
The market expected net flows to improve following the announcement by bankrupt crypto lender Genesis that it had completed its multibillion-dollar offloading of GBTC shares, which would be used to purchase BTC.
In the short-term BTC price action, traders are now looking for signs of an upward reversal. Crypto Ed, a trader who started the week with an $80,000 target, is now eyeing $73,000 as the first step for an upward continuation.
Some traders, however, remain cautious. For instance, trader and chartist Credible Crypto reiterated a previous theory that predicted a fresh BTC price dip to $60,000 or lower.
