Recent data King Young Ju, CryptoQuant’s CEO, reveals a noticeable slowdown in *BTC* spot ETF netflows, with demand potentially set for a rebound as Bitcoin prices approach critical support levels.
On March 21, 2024, the market witnessed another day of net outflow, totaling $94 million, alongside substantial outflows from GBTC. Fidelity experienced a record low inflow of $2.9 million, marking a significant shift from the peak observed on March 15, 2024. This trend of continuous net outflows has persisted for four days.
Influence of New Investors
The entrance of new whales, predominantly ETF buyers, has been a notable development, carrying an on-chain cost basis of $56,000. This group’s investment behavior is crucial in understanding market dynamics, as corrections in bull markets typically involve a maximum drawdown of around 30%, indicating a threshold of pain at approximately $51,000. Such metrics are vital for investors gauging the market’s resilience and potential recovery pathways.
In bull markets, corrections serve as a natural adjustment mechanism, with a typical maximum drawdown of about 30%. This correction phase underscores the market’s volatility but also its potential for recovery. For Bitcoin, reaching the $51,000 mark represents a significant psychological and financial test, likely influencing both individual and institutional investment strategies.
