Key Points
- The Bitcoin spot ETF saw an outflow of over $200 million on 8th April, a deviation from the recent trend.
- Despite this, the general BTC netflow exhibited a dominance of inflows, suggesting more traders depositing into exchanges.
Bitcoin’s spot ETF experienced a substantial outflow of over $223 million worth of BTC on 8th April.
This marked a significant deviation from the trend observed in recent days, with the last such volume of outflow occurring on 20th March.
Bitcoin Spot ETF and Exchange Netflow
Interestingly, this outflow happened while Bitcoin’s price was on the rise, surpassing $71,000.
On the other hand, the general BTC netflow on the same day showed a dominance of inflows, indicating an increase in traders depositing their holdings into exchanges.
Despite the influx, the volume was not particularly high, with a total inflow recorded of approximately 555 BTC.
At present, the inflow has increased to over 1,300 BTC.
Underlying Responses
Despite the seemingly opposing movements of the Bitcoin spot ETF and exchange netflow, their underlying responses are similar.
An increase in spot ETF outflow suggests shareholders are selling, possibly due to factors like profit-taking.
Likewise, the prevalence of inflows in exchange netflow suggests holders are also selling to secure profits.
The common factor driving these actions is the rise in BTC price.
On 8th April, Bitcoin’s price surged by approximately 1.73%, reaching around $71,313, marking the third-highest price in its history.
However, at the time of writing, the price had dropped slightly to around $70,400, a decrease of over 1%.
Despite this slight setback, BTC continues to remain within a bullish trend.
