Standard Chartered Predicts Continued Outflows from Bitcoin ETFs

The price of the leading cryptocurrency could decline further due to new outflows from spot Bitcoin ETFs, according to Standard Chartered, reports The Block.

Analysts estimate that inflows into ETFs following the US elections amounted to approximately $1.3 billion, with an average purchase price of $97,000.

Nansen’s chief analyst, Aurelie Barthere, noted that open interest in Bitcoin futures on the CME has remained largely unchanged, indicating limited institutional outflow.

RedStone’s Chief Operating Officer, Marcin Kazmirchak, supported this view.

“The sell-off is largely driven by retail trading, and open interest on the CME does not show significant fluctuations,” explained the expert.

Kazmirchak considers the current situation favorable for purchasing digital gold.

“For long-term investors who care about fundamentals, this is an incredible time to enter the market,” he stated.

SignalPlus co-founder and CEO Chris Yu highlighted the weakening implied volatility of Bitcoin as prices fall, which suggests speculators are abandoning expectations of short-term growth.

In February, former BitMEX head Arthur Hayes suggested the asset’s price could drop to $70,000 due to outflows from exchange-traded funds.

The cryptocurrency fear and greed index has fallen to 10 points, its lowest since June 2022, indicating extreme panic.

Binance CEO Richard Teng believes the downturn in digital assets is temporary and will not last long.

Previously, Eric Trump, son of former US President Donald Trump, urged accumulating Bitcoin during the dip. On February 4, he also recommended buying ETH following a major correction.