Bitcoin Falls Below $62.5K, ETFs See $82.5M Outflow

Bitcoin falls below $62.5K, market sentiment shifts as CoinDesk's BTC Trend Indicator turns neutral amid global tensions.

By Barry Stearns

4/16, 02:26 EDT
Bitcoin / U.S. dollar

Key Takeaway

  • Bitcoin falls below $62.5K, and Ether remains above $3000 as CoinDesk's BTC Trend Indicator shifts to neutral.
  • Last week saw a negative flow of $82.5 million from bitcoin ETFs, predominantly from GBTC, despite robust trading volumes.
  • Luxury watch market prices continue to decline despite strong equity and crypto market performances, with high inventory levels cited.

Market Downturn

Bitcoin (BTC) experienced a significant drop, trading below $62,500, marking a nearly 4% decrease in the early hours of the Asia business day. Similarly, Ether (ETH) saw a downturn, albeit maintaining a position above $3,000. The broader crypto market wasn't spared, with the CoinDesk 20, which tracks the world's largest and most liquid digital assets, also down by 4%, trading at 2,139. This downturn reflects a broader sentiment of caution among investors, as indicated by the CoinDesk Indices Bitcoin Trend Indicator (BTI) flipping to neutral from bullish. This shift signals a weakening in the upside momentum of Bitcoin's price trends, a sentiment echoed across the market as Ether's trend indicator also hit neutral.

ETF Flows and Trading Volumes

Despite the market's downturn, trading volumes have remained robust. BTC Spot ETFs recorded a weekly trading volume of approximately $16.2 billion, averaging $3.2 billion per day, with a cumulative trading volume since inception standing at around $212 billion. This suggests a sustained investor interest in cryptocurrency assets despite price volatility. However, the market has observed significant outflows, particularly from the Grayscale Bitcoin Trust (GBTC), which saw outflows totaling negative $82.5 million last week. This trend of outflows, particularly from GBTC, contrasts with the otherwise strong trading volumes, indicating a complex investor sentiment landscape.

External Market Influences

The recent market movements cannot be viewed in isolation from broader geopolitical and economic events. The downturn coincided with heightened tensions in the Middle East, as Iran launched drone and missile strikes against Israel, contributing to market volatility. Additionally, former BitMEX CEO Arthur Hayes pointed to the potential impact of reduced dollar liquidity ahead of U.S. tax payments due on April 15, suggesting a link between fiscal cycles and crypto market dynamics. These events underscore the susceptibility of the crypto market to external geopolitical and economic factors, influencing investor sentiment and market trends.

Street Views

  • Matteo Greco, Research Analyst at Fineqia (Neutral on BTC and ETFs):

    "Despite the downturn, trading volumes remained robust, with BTC Spot ETFs recording a weekly trading volume of approximately $16.2 billion, averaging $3.2 billion per day. The cumulative trading volume since inception now stands at around $212 billion, with an average daily trading volume of approximately $3.3 billion."