According to 10x Research, the average buying price of Bitcoin spot ETF buyers in the United States is about $57,300. Currently, BTC is oscillating around this level, and it remains to be seen whether it will become a strong support for the price.
Bitcoin has encountered the most severe headwinds in the past two months, with the largest drop in the past three days exceeding 12%. Despite the Federal Reserve’s decision to keep the federal funds rate at 5.25-5.5% for the sixth time in a row, and Chairman Powell’s statement that there are no plans for further rate hikes and that quantitative tightening (QT) will be slowed down from June, the overall stance is dovish.
However, Bitcoin fell below $57,000 again earlier today around 9:30 am. Since yesterday afternoon, Bitcoin has fallen below $57,000 more than five times and then rebounded. At that time, the cryptocurrency research institution, 10x Research, stated that if this price level is indeed the average entry price of the US Bitcoin spot ETF and it has not been able to break through for a long time, it could indeed become a price support for BTC.
However, not all analysts hold the same view. According to The Block, Geoffrey Kendrick, Head of Foreign Exchange and Digital Asset Research at Standard Chartered Bank, stated that the US Bitcoin spot fund has been experiencing net outflows for five consecutive days, and the average purchase price of ETFs is currently below $58,000, posing a liquidation risk. He also added that the poor response to the recently launched Bitcoin and Ethereum spot ETFs in Hong Kong may also be a reason for the recent decline in Bitcoin prices.
According to SoSoValue’s data, as of April 30th Eastern Time, Bitcoin spot ETF has experienced net outflows for five consecutive days. And according to the platform’s calculations, it is also expected to continue to flow out on the first day, which means it will set the longest outflow record (six consecutive days) in the past month, which is not good news for the BTC price.
As of the time of writing, the total net asset value of the Bitcoin spot ETF is $47.72 billion, and the ETF’s net asset ratio (the proportion of market value to the total market value of Bitcoin) is about 4%.
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