The crypto market has been taken aback by a sudden and significant downturn in Bitcoin ETF inflows, which saw an 80.6% reduction within a single day.
This sharp decline, as reported by a Spot On Chain, resulted in the net inflow dwindling to $133 million, a stark deviation from the robust inflows witnessed in the preceding days.
This unexpected shift in the investment landscape has raised eyebrows across the financial sector, with the ETF inflow contraction aligning with a noticeable dip in Bitcoin’s market price, which descended below the $67,000 mark.
CoinGlass reported that this period also saw 193,431 traders liquidated, culminating in a total liquidation amounting to $682.14 million.
Following a record-setting inflow of $1.05 billion just two days earlier, the abrupt decrease in ETF inflows suggests a volatile and changing market sentiment.
Despite the downturn, Spot On Chain, another analytics platform, noted that the cumulative total net inflow into Bitcoin ETFs after 44 trading days remained in the positive, totaling $11.96 billion.
However, the current net inflow is at its lowest in the last eight trading days, indicating a cooling period following the recent surge in bullish activity.
Bitcoin’s valuation felt the immediate impact of these developments, with the cryptocurrency enduring a 7% decline from the previous day’s high, closing at $71,371.
The downward trend continued, with Bitcoin’s price further retracting to $66,767 in the early trading hours of the following day.
It also marked the second consecutive day of diminishing inflows into Bitcoin ETFs, signaling a potential shift in market sentiment that could have enduring effects on the cryptocurrency’s valuation.
Analysts are now closely watching Bitcoin’s price for potential support levels, as the cryptocurrency endeavors to maintain its current price point.
Breaking below these support levels could further aggravate Bitcoin’s downward trajectory, potentially driving the price toward the $64,000 mark.
In recent trading activity, Bitcoin’s valuation experienced a 7.72% decline, settling at $67,483.45, while its trading volume witnessed a substantial increase of 54.20%, reaching $74.48 million.
The past day has seen Bitcoin’s price fluctuate between a high of $73,750.07 and a low of $66,855.76, highlighting the market’s inherent volatility.
