Bitcoin is down $2000 today or 4.5% as the selling after the ETF debuts continues. Bitcoin rose as high as $49051 in the hour after the 11 US bitcoin ETFs were launched but a ‘sell the fact’ trade quickly emerged and it’s been downhill ever since.
Today bitcoin held at the January lows of $41,200 for a period but after that broke it fell to $40,624, which is the lowest since December 18. The December low of $40,178 coincides with the $40,000 psychological level and that will be critical for the next phase of trading.
So far, the flows into bitcoin ETFs have been disappointing with about $2.9 billion landing in the new ETFs. However the GBTC Grayscale ETF has lost $1.6 billion and the futures-based BITO ETF has lost about $400 million. So that’s a net $900 million into an $800 billion market.
There was some good news yesterday as flows seemed to pick up, especially into Blackrock’s IBIT but that doesn’t appear to be enough.
Prior to the launch of the ETFs, bulls were touting $2 billion in net inflows in the first two days and $50-100 billion by year end. Given what we’re seen so far, those numbers look unlikely.
This article was written by Adam Button at www.forexlive.com. Source