Analyst Links Bitcoin Sell-off to Internal Factors Rather Than ETFs
Despite significant market downturns, recent Bitcoin ETF outflows remain modest according to industry experts.
Outflows from Bitcoin ETFs in the past month were minimal, even amid a historic market fall in October that saw a 20% drop in Bitcoin (BTC) prices.
According to Bloomberg’s senior ETF analyst Eric Balchunas, Bitcoin ETFs experienced under $1 billion in outflows following the recent market turmoil. On Thursday, they rebounded, recording around $240 million in inflows after breaking a six-day streak of outflows, with Balchunas sharing nets outflows of approximately $722 million over the past month.
“Told y’all the ETF-using boomers are no joke. So who’s been selling? To quote that horror movie, ‘Ma’am, the call is coming from inside the house,’” said Balchunas.
“Dico o que y’all ETF-using boomers não são brincadeira. Então quem tem vendido? Para citar aquele filme de terror: ‘Senhora, a chamada vem de dentro da casa.’”
Balchunas’s comments allude to the recent sale of 400,000 BTC by long-term holders and cryptocurrency whales cashing out around the $100,000 mark during October.
The disastrous market crash in October erased nearly $20 billion in leveraged cryptocurrency positions in just 24 hours, marking the most catastrophic liquidation event in history. This downturn has led to reevaluations of future price predictions by several investment firms.
Long-term Bitcoin holders, specifically those who have maintained their BTC for 155 days or longer, sold off 405,000 BTC valued over $41.3 billion, according to CryptoQuant analyst Maartunn.
About half of all surveyed ETF investors by Charles Schwab in mid-2023 expressed plans to acquire crypto ETFs, a preference surpassing equities, commodities, and real assets.
“ETFs are slow money. RIAs, pensions, and 401(k)s buy rules, not rumors.” stated Shanaka Anslem Perera in a remark reflecting the steadier nature of ETF investments compared to trading.
These passive investments into BTC ETFs are seen as lessening price fluctuations and establishing a support level, attracting funds from traditional investors. This trend is signaling a growing confidence in Bitcoin’s long-term appreciation as a strong store of value.
