Bitcoin’s downside risk still remains: CryptoQuant | CoinDesk JAPAN

Headwinds for Bitcoin (BTC) continue to persist, with the price likely to decline in the coming days despite the early success of multiple spot exchange-traded funds (ETFs) listed in the US. may be a factor in the decline.

Bitcoin prices fell as much as 15% last week after the long-awaited ETF listing, with outflows from Grayscale’s Bitcoin Trust product said to have contributed to the downward pressure.

ETF trading volume data provided by BlackRock, Fidelity, and Bitwise showed that the cumulative trading volume of ETFs reached the $500 million mark (approximately 75 billion yen, at an exchange rate of 1 dollar = 150 yen) earlier this week. , indicating demand from regulated funds and professional traders. Coinbase, a custodian for multiple ETF providers, has seen a record high in transfers through its OTC desk.

(CryptoQuant)

However, further downside risks remain, data provider CryptoQuant said in a Jan. 18 note shared with CoinDesk.

“Several on-chain metrics and indicators suggest that the price correction is not over, or at least a new rally is not yet in the cards,” CryptoQuant analysts said. “Short-term traders and large Bitcoin holders are still selling heavily amid a ‘risk-off’ attitude.”

“Furthermore, unrealized gains have not fallen to the point where sellers are exhausted,” the company added. While many traders expect prices to rise after the ETF goes public, CryptoQuant was one of the few crypto traders to take a contrarian view on Bitcoin ETF approval.

Many traders also shared this sentiment, noting that spot selling appears to have occurred, weakening the strength of the rally.

“Bitcoin’s intraday price range was over 3.5%, but reaching the high of its recent trading range led to an organized sell-off in the early hours of the 17th,” said FxPro Senior Market Analyst. said Alex Kupczykevich in an email to CoinDesk.

“Intraday movements indicate systematic selling near local highs. This is alarming, but not a verdict on the crypto bull market,” Kupczykevich added.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: CryptoQuant
｜Original text: Bitcoin Downside Risks Remain Despite Early Success of Spot ETFs, Observers Say