'Narrow Sideways' Bitcoin Drops 1.45% Amid Spot ETF Net Outflows [Bitcoin Now]

Road Decline to Around $63,000
Marked Risk Asset Aversion
"Long-Term Recovery to Past Highs Expected"

Last week, as net outflows continued from Bitcoin spot exchange-traded funds (ETFs), the price of Bitcoin slipped back to the $63,000 level. Although there were no clear negative factors, the overall risk asset investment sentiment was hit, resulting in Bitcoin experiencing a dull sideways market. However, from a long-term perspective of over a year, there is optimism that Bitcoin prices will recover to past peak levels along with a global liquidity recovery.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 12:15 PM on the 27th (Korean time), Bitcoin was trading at $63,020.43, down 2.16% from the previous day. Compared to a week ago, it fell 1.45%, and compared to a month ago, it dropped 10.63%. However, it recorded a 117.98% increase compared to a year ago.

Bitcoin prices briefly recovered to the $67,000 level on the 23rd but started declining again from the 24th. Prices attempted a rebound on the 26th but resumed a downward trend through the 27th. Intraday, prices dipped to the $62,000 range but recovered to the $63,000 level thanks to bargain buying.

The market's focus last week was that BlackRock, the world's largest asset manager, recorded zero net inflows for its Bitcoin spot ETF. According to Bloomberg and other sources, on the 24th (local time), BlackRock's Bitcoin spot ETF had a daily net inflow of zero dollars. This was the first time since the U.S. Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs in January. Following BlackRock's ETF net inflow hitting zero, the total spot ETF market shifted to a net outflow of $102.6 million on the 24th, marking the first outflow in four days.

Institutional funds have been a driving force supporting Bitcoin prices. BlackRock's ETF is particularly significant as it holds the largest assets among the 11 ETFs approved by the SEC. In fact, as spot ETF inflows decreased, Bitcoin prices fell to $64,000.

Although Bitcoin is trading within a narrow range, there are views that it will show an upward trend in the long term. As global liquidity increases again, Bitcoin prices are expected to regain past highs. Currently, factors such as a strong dollar, inflation, and geopolitical risks are cited as constraints on upward movement.

Economic expert and well-known blogger Lyn Alden said in an interview with U.S. economic media CNBC, "It is natural for prices to surge and then fall again," adding, "For the time being, prices will fluctuate within the recent range, but in 12 months or later, liquidity will increase and Bitcoin will follow."

According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment as of this day, stands at 67 points (Greed). Last week, it was 66 points (Greed). Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.