From record highs to a drop of over 10%! ETF demand shrinks, Bitcoin poised for its worst weekly performance of the year
Bitcoin spot ETF encountered the most severe three-day outflow of funds since its listing. JPMorgan Chase warned that this downward trend may continue, with Bitcoin price expected to plummet to $42,000 after April
As the market cools on Bitcoin spot ETF, the price of Bitcoin has dropped more than 10% from its all-time high. In response, JPMorgan Chase issued a warning, stating that this downward trend may continue.
The existing 10 Bitcoin spot ETFs saw a net outflow of $742 million from Monday to Wednesday, marking the largest three-day outflow since the launch of Bitcoin spot ETF on January 11.
Meanwhile, as the world's largest cryptocurrency, Bitcoin fell nearly 4% overnight, marking its worst weekly performance so far this year. At the time of writing, the trading price of Bitcoin fluctuated around $65,400, down over 10% from its all-time high of $73,798 on March 14.
JPMorgan Chase stated that despite the recent pullback, the Bitcoin market still shows signs of overheating. They reiterated their February forecast, suggesting that there is further downside potential for Bitcoin before the Bitcoin halving event in April (a reward reduction for miners that occurs every 4 years).
In their report on Thursday, JPMorgan Chase pointed out that the continuous decrease in open interest contracts of CME Bitcoin futures and ETF fund flows are important signals for the decline in Bitcoin prices.
The recent slowdown in the inflow of spot Bitcoin ETF funds, and even significant outflows in the past week, indicate that the previously expected continuous one-way inflow status may not persist. As the halving event approaches, the likelihood of investors taking profits increases, especially when the market positioning remains overheated.
Last month, JPMorgan Chase predicted that as the enthusiasm caused by the Bitcoin halving event fades, the price of Bitcoin will plummet to $42,000 after April.
Naeem Aslam, Chief Investment Officer of Zaye Capital Markets, also mentioned that retail investors' enthusiasm may wane.
This rally did not continue strongly from its all-time high, which has made many investors skeptical about the strength of this uptrend. With the halving event approaching, if this event fails to further drive market momentum, we may see a significant pullback in Bitcoin, with the price potentially falling below $50,000