On May 10, 2024, Bitcoin, the largest cryptocurrency by market capitalization, experienced a surprising drop after nearly 16 hours of sideways trading. Despite the decline, a noteworthy influx of funds into spot Bitcoin ETFs might signal renewed interest from investors and traders.
According to LookOnChain, a prominent on-chain analytics firm, out of 10 spot Bitcoin ETF issuers, 9 added an impressive total of 714 Bitcoins valued at $43.76 million today, reflecting a net inflow of $43 million into BTC ETFs.
BlackRock and Grayscale Bitcoin ETFs:
The bulk of these inflows was captured by BlackRock’s iShare Bitcoin Trust (IBIT), which recorded a net addition of 228 BTC worth approximately $14 million. This increase brings BlackRock’s total Bitcoin holdings to 274,550 BTC.
Conversely, Grayscale’s Bitcoin Trust (GBTC) saw a net outflow, decreasing by 12 BTC, valued at around $733,000. Despite this reduction, Grayscale maintains a substantial lead with 291,790 Bitcoins in its holdings, valued at $16.83 billion.
Bitcoin’s Market Outlook:
As of now, Bitcoin is trading at about $60,450, with a significant drop of over 2.5% in the last 24 hours. The decline was sharp, occurring within just a 3-hour window, though the day’s trading peaked at $63,440, demonstrating the market’s volatility.
Technical analysis suggests a bearish outlook for Bitcoin as it trades below the 200 EMA (Exponential Moving Average). A crucial support level is noted at $59,800. Should Bitcoin break below this level, it could potentially drop further to $57,000. However, a recovery from this point could lead to continued market fluctuation within a choppy trading range.
Not a financial advice.