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BTC traded below $92,000, its lowest level so far in December.
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Despite this, the bullish outlook for BTC remains.
Bitcoin (BTC) is recovering after trading below $92,000, its lowest level so far in December.
The main reason for this drop was the $276 million that came out of the exchange-traded funds (ETFs) of bitcoin in the United States.
According to data from SosoValuethe Grayscale Bitcoin Mini Trust (BTC) and Franklin Templeton Digital Holdings Trust (EZBC) funds were the only ones that had money inflows of $6.4 million and $5.6 million, respectively.
For its part, the ARK 21Shares Bitcoin ETF (ARKB) recorded outflows of more than $87 million, while the iShares Bitcoin Trust (IBIT) reported capital outflows of $72 million.
The Fidelity Wise Origin Bitcoin Fund (FBTC) and the Grayscale Bitcoin Trust (GBTC), meanwhile, had outflows of $71 million and $57 million, respectively. The rest of the funds did not report income or expenditure of money.
Since its launch on the market, Bitcoin ETFs accumulate more than $36 billion.
Inflows and outflows of money in bitcoin ETFs. Source: SosoValue.
The poor performance of these financial instruments had a direct impact on the price of BTC, which in the last few hours recovered after trading below $92,000. Currently, its price is $97,000.
Bitcoin price from March to December 22, 2024. Source: TradingView.
As explained in Criptopedia, educational section of CriptoNoticias, the performance of the ETFs it has a direct impact on the price of the underlying asset, in this case BTC.
Due to its operation, management companies must keep bitcoin in their treasuries to support their actions, limiting the amount of BTC available on the market. By simple law of supply and demand, this creates an upward impulse in its price..
Beyond this price drop, it is worth highlighting that The bullish outlook continues for the coin created by Satoshi Nakamoto.
Scott Melker, the trader known on the networks as The Wolf of all the Streets, explained that bitcoin price pullbacks of 10% to 25% are typical in a bull market. “While these types of setbacks are not for the faint of heart, they are not cause for panic either: it is normal behavior,” he explained.
For its part, the investment company Bitcoin Suisse reaffirms his bullish forecast for next year. “Our models predict that bitcoin will reach maximum cycle valuations in the range of 180,000 to 200,000 dollars (USD) throughout 2025,” they highlight.
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