- The BTC spot ETF saw an outflow of over $200 million.
- The net inflow on the exchange was dominated by a positive inflow.
According to Spot Bitcoin approvals [BTC] ETFs in the US continued to see high Bitcoin inflows. As the price of BTC appeared to be on the verge of regaining its all-time high, ETF flow reached its monthly high.
Outflow dominates Bitcoin spot ETF volume
Bitcoin spot ETF netflow analysis on Coinglass found that on April 8th it recorded its highest flow since March 27th. However, this flow marked a deviation from the trend observed in recent days.
Source: Coinglass
According to the graphic, significant outflow occurred on April 8th, the first of its kind since March 20th. The data showed an outflow of over $223 million worth of BTC on April 8th.
Interestingly, the last time Bitcoin experienced such an outflow volume, it experienced a price drop. Unlike previous cases, this outflow occurred while Bitcoin was rising and crossing the $71,000 mark.
Bitcoin is seeing more foreign exchange inflows
While the Bitcoin spot ETF saw significant outflow amid the price surge, the overall BTC net flow showed the opposite trend on April 8th. The analysis of net inflows indicated a dominance of inflows, indicating that more traders were depositing their holdings on exchanges.
Source: CryptoQuant
What is noteworthy, however, is that despite the dominance of inflows, the volume was not particularly large. The total inflow recorded was around 555 BTC. Currently, the inflow has increased to over 1,300 BTC.
Although the Bitcoin spot ETF and exchange netflow metrics appeared to move in opposite directions, their underlying reactions are similar.
A spike in spot ETF outflows suggests shareholders are selling, possibly due to a variety of factors including profit-taking. Similarly, the prevalence of inflows in exchange net flow suggests that holders are also selling to make profits.
In both scenarios, the BTC price increase is the driving force, a common factor influencing these actions.
The BTC price rise is taking a breather
On April 8, the price of Bitcoin increased by around 1.73% and reached around $71,313. Although this was not Bitcoin's peak, analysis suggested that it marked the third highest price in its history.
Read Bitcoin (BTC) Price Prediction 2024-25
However, at the time of writing, the price had already dropped. BTC was trading at around $70,400, down over 1%.
Although this decline represented a setback from the previous day's rally, BTC still remained in an uptrend.
Source: TradingView
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