Bitcoin‘s market value was approaching its daily zenith, priced at $70,700, while DOGE reclaimed its prominent status with a surge to $0.22. The mood for altcoins over the next few hours hangs on the day’s closure maintaining its current monetary band. Speculations are rife about the impact of Exchange Traded Funds (ETFs) in this scenario.
ETF Dynamics Reshape Market Expectations
Observations from the past week have revealed the influence of ETF transactions on market volatility. It’s become evident that while ETF demand can wane, its selling pressure can imbue cryptocurrency exchanges with pessimism. With uncertainty looming over the market’s next downturn, the intensity could be exacerbated by aggressive ETF liquidations, even before witnessing the climax of a bull trend. Recent data has shown a glimmer of hope, as GBTC experienced only a modest outflow of $104.9 million, with BITB and ARKB ETFs enjoying substantial inflows.
Despite the reduced activity for Fidelity and IBIT on March 28, GBTC’s outflows remained low, indicating a stable net influx akin to the previous day’s performance. This pattern suggests that Asian investors might sustain and even boost market growth.
Forecasting Bitcoin’s Trajectory
The ETF channel has funneled nearly $12 billion into Bitcoin, marking an impressive start as the first quarter draws to a close. A feat rarely seen with altcoins, this level of net inflows and volume fuels long-term confidence in Bitcoin’s potential, echoing sentiments from BlackRock’s CEO. Yet, the immediate outlook for Bitcoin’s price in the days ahead is the focus of most investors.
Presently, Bitcoin shows strength, with the support at $70,460 and closing above $70,700. While it faces resistance at $71,518, this could soon be breached. Crucially, surpassing and establishing the all-time high of $73,777 as support is seen as a precursor to an $80,000 valuation.