Standard Chartered Predicts Continued Outflows from BTC ETFs May Lower Bitcoin Prices

The price of the first cryptocurrency may drop to lower levels due to new outflows from spot Bitcoin ETFs, according to Standard Chartered, as reported by The Block.

Experts estimate that inflows to ETFs after the U.S. elections amounted to around $1.3 billion, with the average purchase price sitting at $97,000.

Aureli Bartere, the chief analyst at Nansen, pointed out that the open interest in Bitcoin futures on the Chicago Mercantile Exchange (CME) has remained relatively stable, indicating a limited outflow from institutional investors.

This view was supported by Marcin Kazmircak, Chief Operating Officer of RedStone.

«The sell-off is largely driven by retail trading, while open interest on the CME shows no significant fluctuations,» the expert explained.

Kazmircak believes the current market conditions are favorable for purchasing digital gold.

«For long-term investors concerned about fundamentals, this is an incredible time to enter the market,» he noted.

Chris Yu, co-founder and CEO of SignalPlus, highlighted a decrease in Bitcoin’s implied volatility during price declines, indicating a shift away from speculative expectations for short-term gains.

In February, former BitMEX CEO Arthur Hayes suggested the asset’s price could drop to $70,000 due to outflows from exchange-traded funds.

It’s worth noting that the cryptocurrency fear and greed index has fallen to a low of 10 points, the lowest since June 2022, which corresponds to an extreme panic zone.

In the opinion of Binance CEO Richard Teng, the downturn in digital assets is a temporary setback and is unlikely to last long.

Earlier, Eric Trump, the son of U.S. President Donald Trump, urged investors to accumulate Bitcoin during the dip. On February 4, he also recommended purchasing Ethereum following the recent market correction.