Is Bitcoin Rally Over Now As BTC Inflows Slow Down?

Investors appear to be growing cautious about the Bitcoin rally, with the BTC inflow slowing down. The recent outflow in the US Spot Bitcoin ETF indicates a waning institutional interest, with many seeing it as a potential threat to the ongoing rally.

Will Bitcoin Rally Continue Amid Slowing BTC Inflow?

The US Bitcoin ETF inflow has slowed from its robust performance over the last eight days, Farside Investors data showed. From April 17-29, the BTC inflow totaled $3.93 billion, which has helped in a strong rally for the flagship crypto’s price, sending it to over $95K.

BlackRock BTC ETF Reigns Supreme

However, on April 30, the investment instruments recorded a combined outflow of $56.3 million. It’s worth noting that BlackRock IBIT has still recorded an inflow of $267 million on Thursday. Also, IBIT has consistently recorded inflows since April 14.

Meanwhile, the recent combined outflow indicates that the institutional interest is fading, which might add pressure on the crypto’s price. Besides, many are also questioning the potential of the Bitcoin rally ahead.

Bitcoin Rally To Sustain? Here’s What To Watch Next

Despite the slowdown in BTC inflow on Thursday, it appears that investors are still putting their bets on the asset. It also indicates that the traders are confident in the long-term potential of Bitcoin, betting on a continuing rally.

Notably, BTC price today was up over 1.3% and traded over $96,000 during writing. However, in the early US hours, the price dropped to $93,796 on Friday. Besides, the future open interest of the asset also rose by over 5%, reflecting the strong confidence of the traders.

What Lies Ahead?

According to CryptoQuant analyst Axel Adler Jr, Bitcoin’s on-chain momentum is gaining steam, with three possible scenarios shaping its next rally. The optimistic outlook predicts a price surge to $150-175K if the Ratio breaks above 1.0.

A base case scenario suggests consolidation between $90-110K, while a pessimistic outlook warns of a correction to $70-85K. With the Ratio currently at 0.8, the next six months will be crucial in determining Bitcoin’s trajectory.

Meanwhile, a recent BTC price prediction also showed that the crypto is likely to soar past the $100K mark this month. Considering all these, it appears that the Bitcoin rally may continue in the coming days, especially if the ETF inflow recovers to provide more support to the bullish momentum.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.