- itcoin’s price could continue falling if inflows into bitcoin ETFs are low early next week, according to an analyst. This comes at a critical time for the cryptocurrency.
- The analyst warns that if inflows into the Purpose Bitcoin ETF remain low on Monday and Tuesday, bitcoin could drop to around $59,000.
- Bitcoin ETFs have seen strong interest recently, so weak inflows could signal declining mainstream acceptance. The latest bitcoin price drop coincided with falling equity markets amid Fed rate hike concerns.
The price of bitcoin could continue its recent correction if inflows into bitcoin exchange-traded funds disappoint early next week, according to an analyst. This potential drop comes at a critical juncture for the cryptocurrency.
Analyst’s Warning
Markus Thielen, head of research at digital asset manager 10x, wrote in a tweet that bitcoin ETF inflows on Monday and Tuesday will be the “real test” for what’s next for the cryptocurrency’s price.
Thielen warned that if inflows into the Purpose Bitcoin ETF remain low early next week, bitcoin could drop to around $59,000. The Purpose ETF (BTCC) is traded in Canada but can be accessed by U.S. investors.
Bitcoin topped $60,000 last weekend before falling below $56,000 on Thursday. The cryptocurrency was trading around $57,600 Friday afternoon.
Why It Matters
Bitcoin ETFs have attracted significant investments from both institutional and retail investors since launches began last year. Strong inflows are seen as a sign of growing mainstream acceptance.
However, BTCC saw outflows of 91 bitcoin on Thursday, equivalent to $5.5 million, according to data from Glassnode.
The latest bitcoin price correction has coincided with a drop in equity markets, as investors weigh the potential for more aggressive Federal Reserve interest rate hikes to combat high inflation.
Cryptocurrencies are seen as a speculative asset class, making them vulnerable to tightening financial conditions. The Fed raised interest rates for the first time in three years this week and signaled ongoing hikes this year.
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