Spot Bitcoin ETFs Poised for Comeback Amidst Price Dip, Analysts Predict

Amid Bitcoin's recent price decline, analyst Ki Young Ju predicts a potential resurgence in the spot Bitcoin ETF market. Despite ongoing negative net flows, Ju suggests that demand for Bitcoin ETFs tends to increase when the cryptocurrency reaches certain support levels. Data indicates that new BTC whales have an on-chain cost basis of around $56,000, suggesting significant inflows into spot Bitcoin ETFs if BTC attains this price threshold.

Will Spot Bitcoin ETFs Make a Comeback Amid Price Slump?

In the wake of Bitcoin's recent price correction, the spot Bitcoin ETF market has been facing headwinds. However, industry analysts are starting to predict a potential resurgence.

ETF Demand Rises with Price Dips

According to CryptoQuant CEO Ki Young Ju, historical netflow trends suggest that demand for Bitcoin ETFs typically increases when the cryptocurrency hits certain support levels. Despite the recent negative flows in BTC ETFs, Young Ju believes this trend could reverse as Bitcoin approaches its support levels.

ETF Whales Bought at Higher Prices

Data from BitMEX Research shows that new BTC whales, particularly ETF buyers, have an on-chain cost basis of around $56,000. This indicates that significant Bitcoin holders acquired the asset at an average price well above its current market value.

Potential for Significant Inflows

Young Ju predicts that if Bitcoin reaches its support levels, it could trigger significant inflows into the spot Bitcoin ETF market. He notes that such inflows would likely come from ETF buyers looking to capitalize on the price dip.

BTC Price Drop Plausible

Cointelegraph Markets Pro data indicates that Bitcoin's price has fluctuated between $62,000 and $68,000 in recent weeks. Young Ju suggests that a further decline is possible, with BTC potentially dropping as low as $51,000.

Correction Driven by Overheating

The recent price correction is attributed to overheated market conditions, which analysts have dubbed a "pre-halving retrace." This correction is expected to be temporary, as the upcoming Bitcoin halving event is seen as a major catalyst for price appreciation.

Halving Event as a Price Booster

A report by CryptoQuant indicates that the Bitcoin bull cycle is still ongoing, with relatively low investment flows from new investors and price valuation metrics below historical highs. The upcoming halving event, which is less than 31 days away, is expected to fuel a parabolic uptrend in Bitcoin's price.

Conclusion

Despite the recent decline in spot Bitcoin ETF netflows, analysts are predicting a potential resurgence as Bitcoin approaches its support levels. The upcoming halving event is also seen as a major driver of price appreciation. However, a further correction in Bitcoin's price is not out of the realm of possibility, with analysts suggesting a potential drop to $51,000.