Cryptocurrency research institution 10x Research founder Markus Thielen warned in a report on Monday that if the inflow of funds into the Bitcoin spot ETF this week is lower than expected, BTC could fall to $59,000.
Bitcoin has faced significant price corrections in recent days, dropping rapidly from the $67,000 level to a low of $64,628. As of the time of writing, it has temporarily rebounded to $65,000, but there is no clear sign of strong upward momentum.
10x Research: Bitcoin may fall to $59,000
Regarding the consecutive price corrections of BTC, Markus Thielen, founder of 10x Research, warned in the report that “if the inflow of funds into the Bitcoin spot ETF this week is lower than expected, BTC could fall to $59,000.”
According to Coindesk, the total inflow of funds into the US Bitcoin spot ETF reached a historical high of $2.6 billion during the week of March 11th to March 15th. However, most of the net inflows occurred from Monday to Wednesday, which pushed BTC to break the historical high of $73,000. On Thursday and Friday, the spot ETF only recorded net inflows of $133-198 million, and BTC subsequently fell below $65,000 over the weekend.
Source: Farside Investors
Markus Thielen stated in the report on Monday that the “real test” for Bitcoin will come on Monday and Tuesday. If the inflow of funds into the ETF is disappointing, the correction of Bitcoin may continue and it may fall to $59,000, indicating a further decline of over 10% from the current price.
The report also added that although there may be deeper adjustments, the bull market of cryptocurrencies is not over yet. “We can still expect Bitcoin to rise significantly in the coming months as the bull market may continue. If BTC recovers above $70,000, a rebound could open the door to a substantial price increase.”
Further reading:
Standard Chartered Bank: BTC may reach $150,000 by the end of the year and stabilize at $200,000 next year. Reasons to be bullish on Bitcoin?
Bloomberg analyst: Retail investors are the main driving force behind the popularity of Bitcoin spot ETFs.
On the other hand, it is worth noting that Eric Balchunas, senior ETF analyst at Bloomberg, stated to Coindesk that the current demand for Bitcoin spot ETFs mainly comes from retail investors, not large institutions. He pointed out, “There may be some financial advisors, but to a large extent, based on trading volume, retail investors are definitely an important factor.”
According to the data provided by Balchunas, the average daily trading volume of the Bitcoin spot ETF “IBIT” issued by BlackRock, the world’s largest asset management giant, is 250,000 shares, with an average transaction size of 326 shares, about $13,000. Additionally, the issuer confirmed to him that the main demand is driven by retail investors.
BlackRock declined to comment on this. BlackRock’s IBIT has attracted over $14 billion in assets within just two months since its listing in mid-January, making it the biggest winner among Bitcoin spot ETFs.
If the current inflow of funds into Bitcoin spot ETFs primarily comes from retail investors, the recent significant price correction of BTC may encourage these retail investors to sell, further driving down the price of Bitcoin.
Related reports:
Analysis: What is the average purchase price of BTC for retail investors after the listing of Bitcoin ETF? Are institutions still waiting on the sidelines?
Bitcoin surged and then corrected! How can ETFs and stablecoins help you judge the future market direction?
Analysis: Why can the continuous inflow of funds into Bitcoin ETFs “stabilize BTC price volatility”?