Bitcoin is down by 14% despite the recent approval of 11 spot BTC ETFs. Experts predict even greater risks with the major cryptocurrency falling to $15,000.
What we see now is millions of inflows just 2 weeks after the Bitcoin ETF approval was announced. It can trigger a massive market selloff also caused by soaring recession. On the other hand, AUM assets managed to beat that of silver ETFs leaving gold the only metal ahead of Bitcoin. Currently, the AUM of Spot BTC ETFs is around $25 billion compared to $11.5 billion silver ETFs in assets.
As a result, the BTC ETF approval opened the door for cryptocurrencies to a bigger number of general investors and financial institutions. However, the asset saw a significant drop featuring a crucial reversal from its recent high of around $49,000. This is why major cryptocurrency funds and platforms have experienced billions of outflows since the crypto has been converted into an ETF.
The world’s biggest crypto fund GBTC saw approximately $4.8 billion of outflows. The fund is currently selling BTC with a huge discount making the market move downside. The huge market selloff may help balance the asset price in the next few weeks. However, experts warn about new risks that may hit the leading cryptocurrency.
When investors become warier, a selloff could mean further difficulties for spot Bitcoin ETF inflows. Some analysts are concerned that Bitcoin may decline again. They believe Bitcoin will test the $15,000 milestone if the stock market drops by 50%.
With the Dow and S&P 500 reaching new all-time highs and the Nasdaq trading near record highs, the stock market has been doing well so far this year. However, historical Bitcoin trading trends suggest that the market may be nearing its peak.
May the trading luck be with you!