Bitcoin Correction, but Far Too Early to Say if Bull Market is Over

Spot bitcoin (BTC) exchange-traded funds (ETF) in the U.S. recorded inflows, however, weaker demand in recent days could trigger a downward slide for bitcoin’s price, according to crypto analytics firm 10X Research.

The launch of crypto-asset ETFs combined to pull in c.$2.6 billion in fresh funds in the period ending 15th March, according to data from Farside Investors, but most of the net inflows happened earlier on helping BTC to rise to new all-time highs of near $74,000. The bitcoin ETFs only booked $133 million and $198 million of net inflows in recent days, leading to bitcoin to trade sharply lower to below $65,000 over in the last few days.

Bitcoin’s price found short-term support at those levels and stabilized at $67,000, but the “real test” will come in the coming days, with bitcoin’s correction potentially continuing if ETF inflows disappoint, according to Markus Thielen, founder of 10X, wrote in a Monday report.

While it can be expected to see inflows slow down after prices experience significant intraday volatility, the decrease in inflows could lead to at least another 10% drop from current BTC prices, in the opinion of some market observers.

Despite the possibility of a deeper correction, it is far too early to say the crypto bull market is over yet and indeed some may see it as potential buying opportunity, such as the U.K. bank Standard Chartered (STAN) has boosted its year-end bitcoin price target to $150,000 from $100,000, while predicting a $250,000 high for 2025.

Furthermore, the UK FCA has also announced that it would not object to requests to create platforms for trading in crypto-backed Exchange Traded Notes (ETNs). The London Stock Exchange subsequently revealed that it would accept applications for the admission of crypto-asset ETNs based on bitcoin and ethereum in the second quarter of this year.

Indeed, bitcoin has seen a technical rebound in the last day or so. What is certain is that bitcoin remains highly speculative, volatile and clearly not something to be entered into by the faint-hearted. However, it is the extra-ordinary moves of bitcoin that seems to not only attract such a committed audience, but continues to excite and fascinate in equal measure, too!

(Source: CoinDesk)

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