Bitcoin Buy The Dip Interest Fades Amid $50K Calls, BTC ETF Outflows Surge
Highlights
- $60,000 will be a crucial support levels for Bitcoin, breaking which can create further havoc.
- Bitcoin ETF outflows skyrocketed to more than $230 million on Friday with Fidelity's FBTC leading.
- BTC volatility shows against the sharp surge in the global volatility index.
Wall Street has been seeing heavy correction and profit books with fears of the US recession leading to a simultaneous fall in Bitcoin and the broader crypto market. With the top three US indices falling by 1.5-2.5% on Friday, the Bitcoin price is down by 4.5% trading at $61.673 with its market cap at $1.21 trillion. Furthermore, investors are taking a wait-and-watch approach instead of buying the dips.
Bitcoin Traders Call for $50K Levels
On-chain data provider Santiment stated that while the Bitcoin price has once again dipped to the early July levels, there’s not the same crowd enthusiasm or buying interest as it was in early July. Santiment believes that the psychological levels of $60,000 for BTC and $2,900 for ETH may be the triggers that prompt traders to start investing again.
On the weekly chart, the BTC price drop has surged to 10% with much of this drop coming in the last four days. With crypto markets retracing across the board, traders have been calling for BTC to drops to sub $50K levels. Santiment believes that a relief rally could be round the corner with this BTC drop.
The global macro sentiment has turned out to be largely bearish with the U.S. unemployment data hitting 4.3% for July against the expected 4.1%. Also, the Volatility Index (VIX) has surged to 28, the highest levels since since the regional banking crisis last year in March 23. However, QCP Capital notes that the BTC and ETH vols have hardly moved. “Front-end BTC ticked up from 45% to 48% while the back-end did not move,” it noted.
Also Read: Bitcoin & Crypto Cheques To Clear $35T US Debt, Donald Trump Says
BTC ETF Outflows Skyrocket
On Friday, the spot Bitcoin ETF outflows surged significantly to $237 million per the data from Farside Investors. Fidelity’s FBTC led the most outflows at $104 million while Ark Invest’s ARKB ranked second with $87.7 million in outflows. Only BlackRock’s IBIT and Grasycale’s BTC saw net inflows.
This massive outflows came despite Morgan Stanley announcing that it would allow qualified clients to seek exposure to BTC ETF. It seems that the global macros have taken an overall tall currently on the market.
Also Read: Peter Schiff Warns US Recession & Inflation Spike Ahead
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