Bitcoin Bears Eye Break Below $40K – Here’s How Low the BTC Price Could Go
Bitcoin bears are eyeing a potential break below the psychologically important $40,000 level as post-spot Bitcoin ETF approval sell pressure ramps up and macro headwinds rise.
The Bitcoin (BTC) price dipped as low as the $40,200s on Friday, though has since rebounded towards $42,000.
Despite a solid near-4% recovery from intra-day lows, the Bitcoin price remains about 15% lower versus yearly highs above $49,000.
And the BTC price is still trading well below its 21 and 50DMAs, suggesting the Bitcoin bears remain in control.
Stronger-than-expected US economic data in the past few weeks has dampened expectations for rate cuts from the Fed.
This has pushed US bond yields and the US Dollar Index (DXY) higher, creating macro headwinds for the crypto space.
But post-Bitcoin ETF approval profit-taking, particularly in Grayscale’s Bitcoin Trust (GBTC), and Bitcoin investment product rotations has also weighed heavily.
Newly launched Bitcoin ETFs from Blackrock and Fidelity have enjoyed substantial demand.
Both have already exceeded inflows of $1 billion since launch.
With over $30 billion in total assets under management across Bitcoin ETF products, Bitcoin already ranks as the second most popular commodity ETF product, lagging only gold, which has ETFs worth around $95 billion.
However, this doesn’t tell the whole story.
Traders are clearly concerned by a higher-than-expected level of rotation from existing Bitcoin investment products to new Bitcoin investment products.
GBTC continues to see substantial outflows, having sold a total of 52,800 BTC since becoming a spot ETF.
Whilst some of these flows might be going to cheaper spot ETF products offered by rivals, some may represent outright profit-taking by traders who had been betting on the
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