Crypto Analyst Says Bitcoin ETF Demand May Rise

Young Ju pointed out that the on-chain cost basis of new BTC whales is about $56,000, and it is expected that if BTC reaches this price level, a large amount of capital will flow into the spot Bitcoin ETF market.

The recent Bitcoin ETF spot market has been bleak amid falling Bitcoin prices. Despite the continued decline in net flows, Ki Young Ju, a well-known analyst and CEO of CryptoQuant, predicts that the spot Bitcoin ETF market may recover.

On March 22, Ki Young Ju posted on X that even if BTC prices continue to fall, spot Bitcoin ETF net flows may rise. Using data from historical net flow trends, the analyst pointed out that demand for Bitcoin ETFs usually emerges when cryptocurrencies track certain support levels.

According to data from analytics firm BitMEX Research, these BTC ETFs have recorded negative flows over the past four trading days. The situation was marked by large outflows from Grayscale’s GBTC, while other ETFs (primarily market leaders BlackRock’s IBIT and Fidelity’s FBTC) saw record low inflows.

Young Ju pointed out that new BTC whales, especially ETF buyers, have an on-chain cost basis of about $56,000. This shows that significant Bitcoin holders, especially ETF investors, usually buy Bitcoin at an average price of $56,000.

Based on this pattern, cryptocurrency quantitative experts expect that if BTC reaches the above price threshold, a large amount of funds will flow into the spot Bitcoin ETF market.

Bitcoin

$64,606

The price has fluctuated between $62,000 and $68,000 over the past week. However, Young Ju said that this drop is reasonable considering that corrections usually drop by up to 30%. With BTC recently reaching a peak of $73,750, analysts predict that the asset’s price could drop to $51,000.

However, in the past 48 hours, the price of BTC has fallen 13% from its all-time high of $73,835 to around $60,000. The adjustment was caused by an overheated market, which analysts called a “pre-halving retracement” with about 30 days to go before the Bitcoin halving event.

A report from CryptoQuant shows that the Bitcoin bull cycle is not over yet, given that investment flows from new investors are relatively low and price valuation indicators remain below levels seen at past market tops.

Meanwhile, the upcoming Bitcoin halving event is expected to boost Bitcoin prices and usher in a parabolic uptrend. According to CoinMarketCap’s halving countdown, there are less than 31 days until the next Bitcoin halving event.