- BlacRock’s IBIT records zero net inflows for two days in a row as total outflows accumulate.
- Bitwise executive claims BTC price could hit $250,000 in 2028 halving cycle.
For the first time since mid-January, BlackRock’s announcement bitcoin [BTC] ETF (IBIT) has seen zero daily inflows for the past two days.
During the same period, on April 24 and 25, cumulative flows were negative, with total outflows amounting to $338.2 million in SoSo value. data.
This has spooked market watchers as others shift their attention to the debut of the Hong Kong ETF next week and potential demand from other institutions such as Morgan Stanley.
But a pseudonymous market analyst, Kamikaze Fiat, has downplayed such prospects, https://twitter.com/kamikaz_ETH/status/1783462678104879264 that,
“It took $12.5 billion of ETF inflows (and who knows how many native flows) to take BTC from $44,000 to $73,000.
Do you think Morgan Stanley can find so many new BTC buyers? Do you think Hong Kong ETFs will have more than $200 million in inflows in the first month? I think what appears below is crack hopium.
Will the decline in BTC ETF inflows reverse?
US BTC ETF spot flows saw a massive decline in the second quarter.
In the first quarter, the largest capital inflows occurred in February, worth $6 billion, followed by March, with $4.6 billion. $1.5 billion was recorded in January as the market tried to familiarize itself with the new products.
So far in the second quarter, April ETF inflows totaled $170 million as of April 24. So, is the demand for BTC ETFs over?
Bitwise CIO Matt Hougan doesn’t think so. In a weekly memo to investment professionals, Hougan said more inflows are possible in the coming months.
Supporting his claims is part of Hougan’s statement. read,
“I think (US spot BTC ETFs) are just getting started. One reason: ETFs are not yet widely available at national sportsbooks like Morgan Stanley or Merrill Lynch. In the meantime, institutions are still beginning their due diligence. “Both areas could represent important sources of long-term demand.”
Furthermore, the Bitwise executive predicted that additional demand could come from central banks ahead of the 2028 halving and emphasized that:
“I think they will start buying Bitcoin before the next halving. Like gold, bitcoin is not debt money: an asset whose supply cannot be expanded through loans. Nor can it be seized by a foreign government as sovereign bonds can (and have recently been).”
In such a widespread adoption scenario, Hougan predicts that Bitcoin could trade above $250,000 by the next halving event in 2028.
How will cryptocurrencies react to next week’s US Treasury action?
In the short term, BitMEX founder and Maelstrom CIO Arthur Hayes believes that a potential $1.4 trillion liquidity injection from the US Treasury could induce bullish momentum next week.
Referring to three possible scenarios during the upcoming Q2 2024 refund announcement by the US Treasury, Hayes
https://twitter.com/CryptoHayes/status/1783701769371185274,
“If any of these three options (variable liquidity injections) occur, a rally in stocks is expected and, most importantly, a new acceleration of the cryptocurrency bull market.”
The quarterly refund announcements are part of the US Treasury’s debt management policy changes, and markets typically react broadly to them.
It will be interesting to see how the upcoming announcement affects Bitcoin until the summer.
Next: OpenSea NFT Sales: Why April Is Seeing Another Low
This is an automatic translation of our English version.
