Bitcoins Temporary Decline Stay Calm Analyst Forecasts 75 Increase Following ETF Trading Spike

Key Points
– Bitcoin ETF trading volume has reached a four-week high, hitting its peak since May 15th.
– Outflows from Bitcoin ETFs have surpassed $200 million, breaking a streak of 19 consecutive days of net inflows.
– Analysts are predicting a 75% increase in Bitcoin’s price, reaching $120k, despite the current market downturn.

Bitcoin is once again at the center of attention, with exchange-traded funds (ETFs) taking the spotlight this time. Recent data from Santiment, a leading market intelligence firm, shows a significant surge in trading volume for top Bitcoin ETFs, marking the highest level seen since mid-May. But that’s not all!

A report from Santiment reveals that the combined trading volume of the top seven largest Bitcoin ETFs has reached approximately $2.89 billion. Despite this surge in ETF activity, interest from retail investors in Bitcoin has dropped to its lowest level in five months, reminiscent of a similar trend observed in January. However, historical data indicates that such declines often precede substantial price increases, with a remarkable 75% surge expected in the next two months.

Analysis of the Surge: Bitcoin ETF Trading Volume
The recent spike in trading volume for Bitcoin ETFs has captured the attention of investors and analysts. The report from Santiment highlights a significant increase in trading activity across the top seven BTC ETFs, including popular names like GBTC, IBIT, FBTC, ARKB, BTCO, BITB, and HODL.

The latest surge, totaling $2.89 billion, mirrors patterns seen previously on March 5th when volume peaked at an impressive $11.13 billion. This surge suggests renewed interest among investors, potentially in response to market downturns.

Contrast: Outflows in U.S. Spot Bitcoin ETFs
In contrast, U.S. spot Bitcoin exchange-traded funds have experienced net outflows of $200 million, continuing a trend from Monday that ended their 19-day streak of net inflows. Grayscale led this exodus, with the largest net outflows of $121 million, followed by Ark Invest with $56 million in net outflows.

Understanding Retail Investor Sentiments
Axel Adler, author at CryptoQuant, highlights that interest in Bitcoin from retail investors has declined to its lowest level in five months, similar to a trend seen in January. However, historical data suggests that such drops in retail demand can precede significant price surges. Adler notes a substantial -17% average monthly change in Bitcoin demand among retail investors (<$10K), hinting at a potential 75% surge that could push Bitcoin's price to around $120k in the near future. As of now, Bitcoin is trading at $67,412, reflecting a 1.4% decrease in the last 24 hours. Despite this decline, trading volume has surged by 8%, reaching $31.3 billion, with a market cap of $1.32 trillion.