ETF Demand Dries Up as Traders Bet Big on Bitcoin Rally
Bitcoin's ETF demand has been massive over the past two weeks but has dropped considerably in recent days. The ETF complex saw a 9-day streak of net inflows totaling $3 billion, but daily demand plummeted from nearly $1 billion to a low of $31 million on Monday.
CryptoQuant analyst JA Maartun stated that 'Bitcoin ETF demand is cooling fast' amid increasing potential sell-side pressure. Short-term holders (STH) have sent 45,000 BTC to exchanges, which could further derail the asset's extended recovery.
Price looks calm, but under the surface, there's a lot of potential sell-side supply. Macro pressure has been a key driver behind the ETF fluctuation and subsequent BTC price pullback from $87,000 to below $84,000.
The Non-Farm Payroll report on Friday will confirm whether the U.S. labor market is indeed weakening. If so, the Fed will opt to hold the interest rate unchanged, which would boost risk assets, including Bitcoin.