2024-03-15 05:11:36
Bitcoin, which had been hitting new highs with its price rising every day, is losing its upward momentum and plummeting.
The reason is that the buying power of spot exchange traded funds (ETFs) has weakened.
Bitcoin spot ETFs in the U.S. market, which were absorbing close to $500 million in funds every day, only increased by $130 million on the 13th.
The price appears to have plummeted as concerns grow that the upward trend caused by Bitcoin ETF purchases may end.
According to CoinMarketCap on the 15th, as of 1:30 p.m., Bitcoin is trading at $67,850, down 7.26% from 24 hours ago.
Compared to the previous day when Bitcoin recorded a record high of $73,777, it fell 8.03% from the high in one day.
Altcoins are also falling significantly. Ethereum is trading at $3689, down 7.22%. Ripple is down 7.20% to $0.6322.
The reason Bitcoin prices plummeted was because of concerns that buying power from spot ETFs would weaken.
As of the 14th, the inflow of spot ETFs was around $132.47 million.
The reason the market was weak was because Bitcoin inflow data that did not add up to BlackRock’s Bitcoin spot ETF ‘IBIT’ spread in the market before the entire data was shared.
Considering the inflow of $345 million into IBIT on the 14th, it is inevitable that the Bitcoin spot ETF will show a net outflow based on data that does not include IBIT.
Accordingly, investors appear to have thought that the fund flow of the Bitcoin spot ETF had changed to a net outflow.
Of course, the net inflow of $132.47 million is also a figure that indicates a significant decrease in buying power compared to before, so the short-term market outlook is bound to worsen.
US Federal Reserve Board
The producer price index (PPI) announced the previous day exceeded market expectations and increased concerns regarding inflation also had a negative impact.
The market expects the Federal Reserve to make its first interest rate cut in June, but concerns have grown that the interest rate cut may be delayed due to continued inflation.
The February PPI announced by the U.S. Department of Labor on this day rose 0.6% compared to the previous month, significantly exceeding the expert forecast compiled by the Wall Street Journal (WSJ) and the January figure of 0.3%.
The U.S. Consumer Price Index (CPI), previously announced on the 12th, also rose 3.2% compared to the same month last year, exceeding experts’ expectations (3.1%).
As the market turned into a sell-off, GIMP, which rose more than 9% this morning, fell slightly to 8.1%.
In the domestic market as well, with Bitcoin selling off, investment sentiment has decreased and the kimchi premium seems to have disappeared.
However, since it is still high, if the Bitcoin price falls further in the future, the downward trend in Korea may be stronger.
According to CryptoQuant, a blockchain data analysis company, the total amount of Bitcoin currently held by global virtual asset exchanges is 2,023,031, down 0.45% from the previous day.
The Coinbase premium, which indicates the buying sentiment of American investors, is -0.028%.
When the Coinbase premium is negative, the market is often bearish.
According to CryptoQuant, the kimchi premium, which indicates buying sentiment in the Korean market, is 8.93%.
Open interest, which represents the number of contracts that have not yet liquidated positions in the futures market, decreased by 7.8% from the previous day. It is an increase of 6.55% compared to a week ago.
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