Bitcoin ETF Demand Could Rise as BTC Price Dips Below $51,000
CryptoQuant CEO Ki Young Ju predicts that demand for Bitcoin ETFs could increase if BTC's price continues to decline. This is based on historical net flow trends, which show that demand for Bitcoin ETFs tends to rise when the cryptocurrency reaches specific price levels.
The recent correction in Bitcoin's price was attributed to overheated market conditions described as a retracement ahead of the upcoming Bitcoin halving event scheduled for April. Analysts expect corrections to result in a drop of around 30%, which could bring Bitcoin's price to approximately $51,000 from its recent all-time high of $73,750.
New BTC whales, particularly ETF buyers, have an on-chain cost basis of approximately $56,000. If Bitcoin's price were to dip to this level, Young Ju anticipates significant inflows into the ETFs.