Is this why the price of Bitcoin keeps falling?

It’s no longer a secret that the 2024 bull run has been quite different from previous bull runs, at least in terms of when the all-time high hit and how BTC has moved after the halving.

The past week or so has not been kind to the asset as it dropped to a monthly low of $55,300. Are Bitcoin ETF Exits to Blame?

The ETF exodus continues

It was less than two weeks ago that the price of the main cryptocurrency rose sharply due to positive developments coming from the US, such as the Fed chair’s promise to start lowering interest rates and the support it had received pro-crypto presidential candidate Donald Trump. . At the time, the asset topped $65,000 for the first time since the massacre in early August.

However, the landscape quickly changed and BTC lost about ten thousand euros until today, when it fell to the aforementioned low of $55,300 (on Bitstamp). While the interest rate narrative is still ongoing, with the Fed expected to cut rates this month and Trump leading the presidential race, the only thing that seems to have changed is the outlook and the behavior of US investors towards Bitcoin spot. ETFs.

CryptoPotato reported last weekend on the significant withdrawals that affected financial products during the then working week. The situation worsened this week, as outflows soared to more than $500 million in just three trading days (Monday was a US public holiday). In fact, the $287.8 million withdrawn on Tuesday was the most since early May.

Is that why the price of BTC is going down?

While speculation is ongoing as to why BTC fails to break its March 2024 ATH of $73,800, the reality is that flows into local Bitcoin ETFs have severely impacted the asset’s price since its beginning in mid-January.

As such, the current seven-day consecutive negative streak of outflows appears to be the most likely reason for BTC’s price decline. The cryptocurrency is down roughly 25% since its peak in March.

In addition, the community is now wondering whether the possible rate cut by the Fed and the potential victory of Donald Trump have already been priced in.

On the other hand, BTC has proven time and time again that it tends to do the opposite of what people expect of it and has “come back from the dead” more times than we can count. Consequently, we wouldn’t be so foolish as to underestimate the largest digital asset by market capitalization.

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