Bitcoin (BTC) spot ETFs trading activity plummeted in the early days of July. This shift coincided with a notable decline in the price of the cryptocurrency to its lowest point in five months.
Trading volumes for the leading seven Bitcoin ETFs took a notable downturn in early July 2024, as per data from analytics firm Santiment. Among the impacted funds are notable names like Grayscale’s GBTC, BlackRock’s IBIT, and Ark Invest’s ARKB.
Market experts suggest that a decline in trading activity may signal a phase of uncertainty among investors, often seen as a hint of upcoming market shifts. Interestingly, this could be viewed optimistically by cryptocurrency enthusiasts, as moments of extreme uncertainty typically come before the market turns.
Renowned Bitcoin skeptic Peter Schiff expressed his bearish outlook for the market. According to Schiff, more than 70% of investors in spot Bitcoin ETFs are currently facing losses. He foresees heightened selling pressure if Bitcoin’s value dips below $38,000, potentially leading to a mass exodus of ETF investors.
Bitcoin (BTC) price falls to lowest level since Feb. 2024
Nevertheless, the recent market shift aligns with BTC’s drop to $53,717 today, a price unseen since Feb. 2024, as per CoinMaretcap. Spot On Chain’s data highlights Bitcoin movements linked to the recent price dip.
Noteworthy transfers involve a major player relocating 3,500 BTC (equivalent to around $206 million) to Binance and the German government shifting 3,000 BTC, out of which 1,300 BTC (approximately $75.53 million) found their way to centralized exchanges.
The U.S. government recently transferred 237 BTC (equivalent to about $13.67 million) to a new wallet, maintaining a strong holding of 213,000 BTC valued at $12.3 billion. These transfers, combined with decreasing ETF activity and withdrawals, suggest a growing sense of uncertainty within the market.
