Bitcoin traders adopt ‘defensive stance’ as 15-day ETF inflow streak ends

12 hours ago

Key takeaways:

Over $342.2 cardinal successful ETF outflows connected July 1 and weaker futures enactment amusement traders becoming much defensive.
Bitcoin traders are watching $106,500 enactment and important absorption astatine $109,000.

Bitcoin (BTC) remains stuck successful a $4,000 scope arsenic muted marketplace enactment and the instrumentality of spot BTC ETF outflows suggest that traders are present switching to a much antiaircraft approach.

US Bitcoin ETFs drawback 15-day inflow streak

Over $4.7 cardinal flowed into US-based spot Bitcoin exchange-traded funds (ETFs) betwixt June 9 and June 30, according to information from SoSoValue.

However, investors stopped the inflows by withdrawing $342.2 cardinal connected July 1 arsenic the Bitcoin terms hovered astir $106,000.

The outflows were from 4 funds, namely Fidelity Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Trust ETF (GBTC), ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB), which saw $172.7 million, $119.5 million, $27 cardinal and $23 cardinal successful outflows, respectively.

Meanwhile, leveraged ETFs person seen humble enactment passim the week, with back-to-back days of insignificant outflows since June 26. Lately, nary worldly flows person been seen successful leveraged instruments, indicative of the low-risk bias among investors.

Together with antagonistic ETF flows, “limited leveraged ETF flows awesome debased leverage and humble yields,” K33 Research said successful their latest Ahead of the Curve report, adding:

“These suggest constricted contiguous hazard of leveraged-driven marketplace squeezes.”

Muted crypto futures activity

Crypto futures marketplace enactment remains muted implicit the past week, with BTC Binance futures annualized premiums dropping to a 21-month debased of 3.9% connected July 1, Glassnode information shows.

K33 Research besides points retired that determination has been nary important alteration successful CME’s crypto futures implicit the past week. Annualized BTC CME futures premiums dropped to an 8-day debased of 6.5% connected June 30, reflecting reduced organization involvement oregon assurance successful a near-term Bitcoin terms surge.

This “reflects traders’ antiaircraft stance” and a “sustained reluctance to instrumentality connected caller agelong positions, which has kept perps trading beneath spot,” K33 Research explained.

Bitcoin’s open interest has besides declined by 35,560 BTC implicit the past week to astir 650,000 BTC astatine the clip of penning and remains good beneath May’s highs of 733,330 BTC, according to information from CoinGlass.

Singapore-based trading steadfast QCP Capital explained that though the enactment markets person shown a humble uptick successful BTC hazard reversals implicit the past 24 hours, implied volatility remains adjacent all-time lows.

In a July 2 Telegram enactment to investors, the steadfast said:

“Basis and yields proceed to bespeak brushed autochthonal sentiment, with astir positioning present favouring accumulation and range-bound activity.”

Traders await Bitcoin terms breakout

Many Bitcoin traders are progressively cautious arsenic BTC continues to tease and retrace, hovering betwixt $105,000 and $108,800 since June 25.

Popular Bitcoin expert AlphaBTC said helium had his eyes connected cardinal levels wrong this scope to spot what determination BTC makes next.

“All eyes are connected $106,500,” the expert said successful a July 2 station connected X, explaining that if the terms reclaims this level, it could spot a “bigger bounce.”

An accompanying illustration shows important absorption supra $109,000, which, if breached, could propulsion Bitcoin into terms discovery.

“A interruption and a four-hour adjacent supra $109K and ATHs are connected the cards.”

AlphaBTC, however, warned that if Bitcoin drops beneath the little bounds of the scope and loses $104,000 with momentum, it could spot a deeper correction to sub-$100,000 levels.

“BTC’s existent consolidation is emblematic of a “new period and quarter, wherever we often spot a choppy commencement aft which the terms chooses a absorption aboriginal on,” chap expert Daan Crypto Trades asserted, adding:

“Give it immoderate clip to play retired and ticker for confirmations.”

As Cointelegraph reported, BTC could beryllium consolidating wrong the existent scope for a fewer much days, with caller request needed to spark upward momentum.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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