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Bitcoin ETF Inflows Rise After BTC Price Drop 

Last Updated April 3, 2024 12:21 PM
James Morales
Last Updated April 3, 2024 12:21 PM
By James Morales
Verified by Peter Henn

Key Takeaways

  • The price of Bitcoin dropped sharply on Tuesday, April 2.
  • Nevertheless, Bitcoin ETFs registered net inflows of $39.5 million throughout the day.
  • Overall, investors appear unfazed by the recent flash crash

After trading between $68,000 and $72,000 for around a week, the price of BTC dropped sharply on Tuesday, March 2, plunging below $65,000 at the button of the dip.

Against the backdrop of Tuesday’s crash, spot Bitcoin ETFs in the US saw net inflows  of $39.5 million – a return to positive growth after ETF investors pulled out $85.8 million on Monday. 

Bitcoin ETF Investors Unfazed by BTC Price Drop

Although Bitcoin lost 5% of its value in a matter of minutes on Tuesday, there is no indication that the flash crash has caused any panic selling. The fact that ETFs still closed the day with positive net inflows suggests investors are confident the drop wasn’t the prelude to a more prolonged bearish spell.

Bitcoin ETF flows
Source: SoSoValue.

Stocklytics  analyst Neil Roarty told CCN: “The dip won’t overly concern investors after months of gains.”

However, he noted that “it does serve as a reminder that the bullish sentiment around Bitcoin, which has seen the cryptocurrency more than double in price since the autumn, will not continue indefinitely.”

What Next for BTC?

Despite recent volatility, most analysts expect Bitcoin to continue on a general upward trajectory for at least the rest of the year.

With many experts anticipating six figures before 2024 is over, a few bumps along the road aren’t enough to dampen the positive sentiment.

Before it reaches $100,000, however, Bitcoin will first have to break through some important resistance levels.

Bitcoin and Resistance Levels

For instance, CCN analyst Nikola Lazic has observed that the cryptocurrency has failed to break above $71,400 on the 3 occasions it has approached the figure in recent weeks.

“If we see a breakout to the upside above $71,400 […] we could expect a new all-time high,” he noted. However, in the negative scenario where BTC continues to encounter strong resistance, it could fall as low as $60,000 before recovering.

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