BitcoinTrading Volume of Bitcoin ETFs Surges Despite Recent Price Drop

Trading Volume of Bitcoin ETFs Surges Despite Recent Price Drop

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On June 11th, U.S. bitcoin exchange-traded funds experienced a significant outflow of $200 million, marking a shift in investor sentiment. The volume of Bitcoin ETFs has surged to its highest level since May 15, suggesting a potential change in market dynamics. After 19 consecutive days of inflows, Bitcoin ETFs have now seen two days of outflows, indicating a wave of selling pressure on the price of Bitcoin this week.

According to data from Santiment, the spike in ETF volume could signal a forthcoming price reversal, as seen across the largest seven ETFs in the market. Analysts attribute the recent uptick in activity to increased investor interest, with many seizing opportunities to buy the dip.

In a surprising turn of events, U.S. Bitcoin spot ETFs recorded another $200 million outflow on June 11, with Grayscale’s GBTC alone witnessing a $121 million depletion in assets in just one day. Consequently, the total net asset value of Bitcoin spot ETFs has dipped below $60 billion, settling at $59.227 billion.

The recent drop in Bitcoin prices below $67,000 has sparked a flurry of buy calls on social media, as noted by Santiment. Historically, Bitcoin prices have often rebounded when sell calls have started to decrease relative to buy calls.

As market watchers await the release of the Consumer Price Index (CPI) data for May 2024, with experts anticipating a 3.4% year-over-year growth or a 0.3% month-over-month gain, the price of Bitcoin remains under pressure. Bitcoin miners are reportedly capitulating ahead of the Federal Open Market Committee (FOMC) meeting, likely leading to heightened volatility in the near future.

In other crypto news today, Bithumb has introduced an ICP Won trading pair despite facing regulatory hurdles, underscoring the ongoing challenges in the cryptocurrency industry.

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