Despite Tuesday's price drop, investors continue to pour money into Bitcoin ETFs | Photo by Yosuke Ota on Unsplash
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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.
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
As the #Bitcoin Spot Price consolidates below the new ATH of $73k, the Long-Term Holder cohort has entered their distribution phase, selling to new investors at higher prices.
This represents an injection of new capital into the asset class, driving the realized cap up to new… pic.twitter.com/gGECO2oyyt
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.
James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
