Bitcoin (BTC) is at risk of ‘profit-taking’ and price weakness amid surge in institutional buying.
Popular trader Skew warned in his latest analysis for X on July 23 that there will be a “headline curse” as the US spot Bitcoin exchange-traded fund (ETF) sees inflows of over $500 million.
ETF Inflows Not Enough to Keep BTC Price Rising
Bitcoin ETFs are seeing a resurgence in popularity this week, but there’s no guarantee the good times will last, Skew says.
On June 22 alone, the largest U.S. spot ETF, the BlackRock iShares Bitcoin Trust (IBIT), saw $526 million in inflows, and historically, such large inflows have preceded BTC price selloffs, he warned.
“This is only the second time that IBIT has reported nine-figure inflows, but both are bullish as they came from the supply side of the market,” he summarized.
Net inflows into U.S. spot ETFs totaled $533.6 million on July 23, the highest since March, according to data from sources including Farside Investors, a U.K.-based investment firm.
At the time, BTC/USD was at an all-time high that still stands today, but the market had fallen by around 25% in the meantime.
“So the obvious part now in terms of actually trading this is will the market maintain this demand and momentum for higher prices,” Skew continued.
He stressed that “consistent” demand for spot prices, supply absorption by spot buyers and overall seller absorption are key requirements to maintain current levels and move higher.
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin is trading at around $66,550 at the time of writing, down 1.5% on the day.
ETH price remains stable with hours left until ETF launch
Meanwhile, there is another concern that is drawing attention to Ethereum ETFs.
Related: Bitcoin Traders Expected to Hit All-Time High in 2 Months as China Cuts Key Interest Rates
Spot ether (ETH) products, which were approved by U.S. regulators to begin trading on July 23, have so far failed to trigger the expected price rally for the largest altcoin by market cap.
ETH/USD, on the other hand, rose 1.5% last week and was flat on the day, a sharp contrast to Bitcoin before the ETF launched in mid-January.
“A lack of positive feedback is a negative feedback,” trading firm QCP Capital wrote in part of the latest announcement sent to subscribers of its Telegram channel.
“The market seems to be watching to see who gives up first to ‘sell the news.'”
As Cointelegraph reported, some expect it will take months to gauge real demand for a spot Ether ETF.
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