Bitcoin ETF Demand Plummets as Traders Bet on $95K Rally
The demand for Bitcoin ETFs has seen a significant drop in recent days. After a 9-day streak of net inflows totaling $3B, the pace of inflows dropped from nearly $1B to a low of $31M on Monday. This represents a 96% decline in institutional appetite, according to CryptoQuant analyst JA Maartun.
Maartun stated that 'Bitcoin ETF demand is cooling fast' amid increasing potential sell-side pressure. He also noted that short-term holders (STH) have sent 45K BTC to exchanges, which could further derail the asset's extended recovery.
The price of Bitcoin has been relatively calm, but under the surface, there are signs of trouble. The $45,054 worth of BTC from STHs moving onto exchanges in a single day is a significant amount of potential sell-side supply.
The macro backdrop remains challenging, with high U.S. yields continuing to pressure risk assets. However, investor demand is showing signs of improvement, and the odds of another 0.25% rate hike have slipped to 42%, while the chances for a rate pause surged to 57%.