Bitcoin Set for Worst Week in 2024 as ETF Demand Falls

Bitcoin has fallen more than 10% from its all-time high as interest in spot Bitcoin ETFs wanes. Strategic advisors at JPMorgan Chase and Co. cautioned the retreat has room.

The 10 spot Bitcoin ETFs had their highest three-day outflow since Jan. 11. A 4% drop in the world's largest cryptocurrency sets it up for one of its worst weeks. The token traded for $65,415 in Singapore at 6:57 a.m. Friday.

JPMorgan strategists said Bitcoin “still looks overbought,” repeating a February call for more falls before April's highly anticipated halving event, which would reduce miners' supply of new Bitcoin.

In a note Thursday, Nikolaos Panigirtzoglou's strategists warned that CME Bitcoin futures open interest and ETF flows are unfavorable for Bitcoin.

The analysts said that net inflows into spot Bitcoin ETFs have slowed substantially, with a big outflow last week. “This challenges the idea that spot Bitcoin ETF flow will be a sustained one-way net inflow.

Profit taking is likely to continue as we approach the halve event, especially against a positioning backdrop that remains overbought despite last week's decline.

The bank projected last month that Bitcoin will fall below $42,000 by April as “Bitcoin-halving-induced euphoria subsides.” Naeem Aslam, chief investment officer of Zaye Capital Markets, believes individual traders may be losing interest in Bitcoin after it reached roughly $73,798 on March 14.

The rally didn't really take off from the all-time high like before made many question its strength,” Aslam said. “The halving is almost here, and if this event fails to keep the momentum going, we will face serious retracement, which could lower the price below $50,000.”

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