30s Summary

Bitcoin ETFs in the US are witnessing a surge in input, eliciting concerns from some experts about a potential decrease in Bitcoin’s value. Analyses warn this pattern mirrors past occurrences where a surge in Bitcoin ETF inputs resulted in a 13% value drop weeks later. Yet, not all analysts agree, with some suggesting a massive influx could indicate a potential supply shortage. Future price predictions for Bitcoin remain optimistic, with some traders anticipating the crypto will reach roughly $80,000 by the end of November.

Full Article

Bitcoin ETFs in the US are seeing a big increase in input lately, and this has got some experts worried. These analysts think that this trend might lead to Bitcoin’s value going down, like what happened in the past. In a note on October 23, Shubh Varma, the CEO and co-founder of Hyblock Capital, said that we might be just starting to see a decrease in price.

Varma noted that Bitcoin ETFs have seen some big upticks over the last few days, with amounts going past $300 million more than once. In the period from October 11 to 21, there was a week straight where Bitcoin ETFs had a total input of around $2.68 billion. After that, there was one day (October 22) when they lost $79.1 million. Then on October 23, the input began to increase again, reaching a daily total of $192.4 million.

This trend reminds some of what happened a while back. When Bitcoin experienced a similar big increase in ETF inputs, the value dropped by 13% about three weeks later. To illustrate, on June 4 and 5, Bitcoin ETFs had an input of $886.6 million and $488.1 million respectively, and Bitcoin’s value fluctuated between $68,800 and $70,000. Just 20 days later, Bitcoin’s value decreased to $60,266.

Varma believes that if Bitcoin value does indeed decrease again, experts would want to see a large outflow from Bitcoin ETFs, as this could potentially open up a new path for Bitcoin to reach record-high prices.

Not all analysts agree about the potential downturn, though. Some argue that the large influx could mean a supply shock is coming. North Node Capital’s chief investment officer Pentosh1, for example, points out that Bitcoin ETFs are buying much more Bitcoin than is being mined each day. This could lead to a situation where sellers run out of coins. Another market analyst, Anup Dhungana, even predicted a looming supply shock.

While the Bitcoin market remains uncertain, some are staying optimistic on future prices. Data from crypto exchange Deribit shows that traders in Bitcoin options are betting that the value of Bitcoin will reach around $80,000 by the end of November.

Source: Cointelegraph