On January 10, 2024, the long-awaited approval for the Bitcoin ETF was granted. This development, previously marred by speculative news, had led to significant losses for many people. However, following the approval, the price of Bitcoin surged to levels between $72,000 and $73,000. Daily, markets were invigorated with increasing Bitcoin entries in many ETFs other than GBTC, and further price increases were anticipated. During this period, the major market player Coinbase exchange particularly stood out as the 30-day blue Coinbase Premium Index consistently showed green following the ETF approval. The increase in ETF volumes (colored turquoise) was supporting this positive atmosphere.
However, by March, withdrawals from ETFs increased, and the withdrawals from GBTC were already intense. This situation led to the disillusionment of dreams on the ETF side. Additionally, cautious approaches regarding inflation from the US further deteriorated the market. ETFs were inflated like a balloon burdened with goods by some and eventually began to deflate.
With this process, the Bitcoin price fell to $61,000, and currently, the ETF side is still weakly progressing. A return to its former glory days requires new inflows into the market. The best way to monitor these flows is by following the data presented in the daily chart below (30-day Coinbase premium, ETF volume, ETF price). Additionally, the futures dominating the market currently should be considered. Unfortunately, small investors continue to take long positions during downturns and short positions during rises. Here, the most critical point is managing the psychological state effectively.
Written by datascope
