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BlackRock Bitcoin ETF Records No Inflows For First Time — BTC Rejected At $67,000 Resistance

Last Updated April 25, 2024 9:45 AM
Nikola Lazic
Last Updated April 25, 2024 9:45 AM
By Nikola Lazic
Verified by Peter Henn

B Key Takeaways

  • BlackRock Bitcoin ETF records zero inflows for first time since its January launch.
  • Meanwhile, Bitcoin fails to breach $67,000 resistance level.
  • Significant fluctuations hint at a potential market downturn.

For the first time since its inception, the BlackRock iShares Bitcoin Trust (IBIT ) experienced a day without any new inflows, marking a significant moment in the history of US Bitcoin ETFs. This occurred as Bitcoin failed to breach the $67,000 resistance level, reflecting a cooling interest amid fluctuating market conditions.

No Inflows In BlackRock Bitcoin ETF

On its first day without any new investments since it launched on January 11, the IBIT reported zero inflows. This marked a notable shift after attracting millions of dollars daily and accumulating nearly $15.5 billion in just 71 days. ETF inflows

On April 24, while most Bitcoin ETFs also saw no new inflows, the Fidelity Wise Origin Bitcoin Fund and the ARK 21Shares Bitcoin ETF bucked the trend. They both receive inflows of $5.6 million and $4.2 million, respectively. Meanwhile, the Grayscale Bitcoin Trust suffered significant losses. It recorded $130.4 million in outflows on the same day, contributing to a net outflow of $120.6 million across Bitcoin ETFs. 

Despite occasional zero inflow days from other funds like Fidelity’s FBTC, the overall US Bitcoin ETF market has grown substantially, with a net total of $12.3 billion in Bitcoin assets. However, outflows from the Grayscale fund, totaling over $17 billion since January 11, have significantly offset these gains.

BTC Price Analysis 

After reaching a high of nearly $74,000 on March 13, Bitcoin underwent several price fluctuations. These included a sharp drop below $60,000 on April 17. This peak is the third phase in a five-wave pattern that began in November 2022. This suggests the recent downturn is a typical fourth-wave correction that another rally could potentially follow.

1-hour chart

Since bottoming out on April 19, Bitcoin has recovered about 12%, climbing to $67,000 as of April 23. it is also is currently testing its previously breached ascending support as a resistance level. Looking ahead, there are two possible outcomes.

On a more pessimistic note, the high in March might represent the peak of a substantial uptrend that started in January. Indeed, the current price movements could, potentially, mark the start of a significant downturn. The decline that ended on March 20 at $61,000 and the recovery to $72,900 in April could represent the initial sub-waves of this downturn. In that case, the third sub-wave is currently unfolding.

Using the Fibonacci extension tool, a target of $53,000 at the 1.618 level is projected. This point could signify the end of the correction phase, setting the stage for a continuation of the bull market.

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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