Bitcoin Price Warning: $530M ETF Inflow Could Lead to Profit Taking, Says Trader

Recent inflows of $530 million into Bitcoin ETFs, notably BlackRock’s IBIT, have sparked mixed Bitcoin price predictions.

While initially appearing bullish, historical patterns suggest these inflows may lead to profit-taking and increased market volatility, potentially causing a temporary price dip.

Bitcoin ETF Inflows of $530 Million May Signal Potential Price Dip

Recent large inflows into Bitcoin ETFs could signal a potential price dip. On July 23, Bitcoin ETFs experienced a significant inflow of $530 million, largely due to BlackRock’s $523 million investment.

Historically, such substantial inflows have often been followed by price sell-offs. This is typically caused by investors taking profits, selling some of their holdings to lock in gains, thus creating temporary downward pressure on the market.

Another large inflow day👇$BTC
As bullish as this is each other time IBIT reported mid – high 9 fig inflow days it occurred around market supply zones

somewhat a headline curse lol

So in terms of actually trading this, the obvious part is now does the market sustain this… https://t.co/qdGwMAvVjl pic.twitter.com/iZ921tpKHW

— Skew Δ (@52kskew) July 23, 2024

• Large ETF inflows historically followed by price sell-offs.
• Profit-taking by investors creates temporary downward pressure.

Additionally, large investments can increase market volatility, leading to price fluctuations and uncertainty. While the investment may indicate positive long-term prospects for Bitcoin, the immediate market reaction could be less favorable.

The recent launch of Ethereum ETFs has also not resulted in a significant price increase for ETH, suggesting a cautious market sentiment. The full impact of these ETF inflows remains to be seen.

Ethereum ETFs Launch, Bitcoin Resilient Amidst Market Volatility

The SEC’s approval of spot Ethereum ETFs is a landmark moment for the crypto industry. Major institutions like BlackRock and Fidelity are now set to launch their own ETH ETFs, signaling growing mainstream acceptance of cryptocurrencies.

• Spot Ethereum ETFs launched on July 23rd.
• Major institutions like BlackRock and Fidelity entering the market.

Despite this positive development, Ethereum’s price dipped slightly to $3,470. Bitcoin, on the other hand, remained steady despite a large transfer by Mt. Gox.

• Ethereum’s price dipped 0.6% to $3,470.
• Bitcoin remained resilient despite a large Mt. Gox transfer.

Market volatility is expected due to the Ethereum ETF launches and Mt. Gox creditor distributions. Additionally, Grayscale’s $1 billion Ethereum transfer to Coinbase Prime and the successful presale of DeFi platform CYBRO, raising $1.4 million, are further contributing factors.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.