Bitcoin BTC/USD continues to trade sideways despite record inflows into Bitcoin Spot ETFs, leaving many market observers scratching their heads.
This apparent disconnect between bullish sentiment and price action has sparked debate within the cryptocurrency community.
ETF Inflows Don’t Guarantee Price Surges:
James Van Straten, Lead Analyst at Crypto Slate, emphasizes the broader market forces at play.
“Yup the market is way bigger than the ETFs.”
He highlights the significant accumulation of Bitcoin (71,000 BTC in the past 30 days) despite record ETF inflows.
However, he acknowledges that “many cohorts are in distribution as the price climbs higher.”
This suggests profit-taking by some investors may be offsetting the buying pressure from ETFs.
Internal Selling May Be Dampening Rally:
Bloomberg analyst Eric Balchunas offers a different perspective.
“This is not ETFs doing, obv bc they buying like crazy lately, it’s bitcoin holders selling or leveraged flushers or whatever.”
Balchunas suggests that existing Bitcoin holders or leveraged traders might be selling, dampening the impact of ETF inflows.
He further observes a recurring pattern: “Time and again ETFs go on flow-a-thons and its met with selling from other holders.”
Also Read: Ethereum ETF Demand May Be Muted Compared To Bitcoin ETFs, Analysts Say
Transparency Concerns Surface:
Frank Makrides, a commentator, raises concerns about transparency. “can you please explain to me how we have had record amounts of fund flows into the $BTC ETFs and we are still range bound?”
He questions the role of major institutions like BlackRock, Fidelity, and their market makers (e.g., JPMorgan) in managing these inflows.
“It seems to me that @BlackRock @Fidelity & their market makers @jpmorgan should show us exactly what they’re doing with their funds – @SECGov ”
Makrides’ tweet highlights a desire for greater transparency within the cryptocurrency ecosystem.
The Bigger Picture
Ludwig Wittgenstein offered a broader view on the situation, comparing it to the patience exhibited by Roaring Kitty in his famous GameStop play.
He said, “Crypto participants can’t stand a ‘chop’ for more than three seconds, running from one narrative to the other.”
This suggests that the crypto market’s impatience and frequent shifts in focus contribute to the lack of sustained upward momentum.
These dynamics and their implications for Bitcoin and the broader cryptocurrency market will be key discussion points at the upcoming Benzinga Future of Digital Assets event on Nov. 19.
Image: Shutterstock
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