If Bitcoin ETF flows soar, will the price of BTC follow?

The key takeaways

• BTC was unable to maintain $70,000 in spite of strong ETF inflows, as public mining offset recent institutional purchases.

• As a put premium of 17 % signals caution, the options market reflects a strong demand for downside coverage.

BitcoinBTCThe market failed to maintain Monday’s level of $70,000 despite net inflows totaling $471,000,000 into US listed spot exchange traded funds (ETFs). Market excitement has waned since reports emerged that US and Israeli aircraft, as well as equipment and military vehicles were destroyed in a weekend operation against Iran.

Since the S&P 500 remained relatively flat between Friday and Tuesday, Bitcoin’s inability to maintain bullish momentum likely stems from other factors.

On Monday, US-listed Bitcoin ETFs saw net inflows of $471,000,000, their highest level in more than five weeks. However, for the two previous weeks, this trend was muted and indicated a lack in confidence. The recent Bitcoin sales made by publicly traded miners are a part of the traders’ concerns.

BTC and Bitcoin mining companies are under pressure

MARA Holdings US (MARA US), according to Lookonchain, reportedly moved 250 BTC Tuesday. data. MARA had previously announced that sale of 15,133 BTC in March According to the report, 38 689 BTC were held. The traders are worried about additional selling pressure, as several miners trim debt in order to fund the strategic move towards AI computing datacenters.

Arkham reports that Riot Platforms, (RIOT US), sold 1,500 BTC during the first full week of April. data. The company’s BTC holdings have increased to 15,680 BTC according to its latest update. fears of continued liquidations High energy prices negatively affect operations.

After accumulating 265 BTC since the beginning of 2024, addresses connected to large miner sold it on Tuesday. according Lookonchain. The address 3PFNdgGi…myCh139 still holds 112 BTC. No matter what the reason for these moves, Bitcoin hashrate decreased to 953 eahashes Monday from 1,083 eahashes late in February.

MSTR US, a subsidiary of Strategy (MSTR), continued to acquire Bitcoins. The total was 4,871 BTC during the week prior. Investors are increasingly concerned that there will be few buyers after the two-month long bear market. This is especially true as those companies who raised debt in order to acquire Bitcoin now face extreme pressure and may have to sell their reserves.

There are many companies in the world that offer a wide range of services. reduced Bitcoin holdings Sequans Communications and Nakamoto Inc. (NAKA) have both seen their Bitcoin holdings drop by at least 35% in the last month. According to BitcoinTreasuries, a few other companies listed on the stock exchange have suffered losses of up to 35% in their Bitcoin holdings. These include GD Culture Group, GDC US, and OranjeBTC, OBTC3 BR.

Related: Bitcoin price risks ‘$15K shakeout’ in the next 5 months, BTC analyst warns

The Bitcoin option markets showed signs of discomfort Tuesday, as call instruments (buying) were trading at 17% more than put options (selling). Whales are believed to have better market knowledge, however the option prices do not reflect the actual market movement.

No indication exists that professional traders lean bearish. However, a day with strong ETF net flows does not indicate increased institutional demand. Even if the Strait of Hormuz is reopened, Bitcoin may struggle to maintain levels over $75,000 due to the current risk-averse mood.