What Bitcoin needs for a move to $70K

Bitcoin witnesses a surge in volume owing to ETFs despite price volatility.
Both long and short liquidations could trigger massive movements in terms of price in the future.

Despite massive fluctuations in Bitcoin’s [BTC] price, the overall interest in BTC remained high. A surge in liquidity for BTC showcased the growing interest in BTC.

Looking at the state of the ETFs

According to recent data, approximately $1 billion worth of Bitcoin ETF volume was seen each week, totaling $8.11 billion since the launch of the Bitcoin ETF.

This week, Bitcoin experienced a 15% retracement from peak to trough, marking the second significant drawdown since the launch of the ETF.

The earlier drawdown, occurring at the ETF launch, was 20%. This recent dip provided an opportune moment for major outflows in ETFs, especially after substantial returns since the 11th of January, prompting a strategic move to de-risk and secure profits.

The five ETFs with the lowest inflows, totaling $660 million, seem relatively inconsequential in terms of tracking.

Notably, GBTC hit a 50% discount at one point, indicating that investors holding it may not be overly concerned about the 20% drawdown.

Despite witnessing $10 billion in outflows, the drawdowns, while present, appear shallower, with ETFs revolutionizing the landscape in the most successful launch in history.

Amid expectations of 30%+ drawdowns based on past cycles, the recent ATH before the halving challenges conventional norms. The evolving dynamics are evident in changing buyer profiles, particularly with no outflows in the past two days and increasing inflows.

Furthermore, with Bitcoin’s supply set to halve in less than 50 days, the market landscape is undergoing significant shifts.

Source: Dune Analytics

At press time, Bitcoin was trading at $66,719.75, reflecting a marginal 0.42% decline in the past 24 hours.

Approximately $2.2 billion worth of long positions set to be liquidated if the price drops to $63,200, while

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Author: Himalay Patel

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