Bitcoin faces pressure as ETF demand cools: Analysts
Bitcoin’s recent slide below $90,000 has shaken a key narrative, that of growing institutional demand, crypto market analysts explain.
- Bitcoin is under pressure as low ETF demand cools the crypto markets
- $800 million in forced BTC liquidations shows excessive leverage
- Bitcoin is likely to stabilize at $89,000–$95,000 range
With Bitcoin falling below $90,000, markets are in a state of panic. A wave of futures liquidations, worsening exchange-traded funds outflows, and lower expectations of corporate buys have contributed to significant downward pressure on the Bitcoin price.
This has brought the crypto fear and greed index to extreme fear at 11 points. Still, according to several crypto market analysts, the drop likely does not reflect a broader structural collapse. Instead, the markets need time to recalibrate after an overheated first half of the year.
The crypto fear and greed index on November 20 | Source: Alternative
According to Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet, the recent $800 million in forced liquidations points to excessive leverage in the crypto markets. While risk-off sentiment is affecting the broader markets, crypto is especially exposed.
“Equity markets are anchored by diversified earnings and macro stability, while crypto expresses stress more violently and more transparently,” Jamie Elkaleh, Bitget Wallet.
Bitcoin to stabilize at $89,000–$95,000
Notably, according to the analytics team from the Bitcoin yield protocol, TeraHash, ETF flows remain a key barometer for Bitcoin’s (BTC) price. They point to the record $523 million outflow from BlackRock’s Bitcoin ETF as a sign of cooling demand.
“At the peak of inflows in late Q2, spot Bitcoin ETFs were drawing around $600–$700 million daily. Due to that, the price quickly broke above the $115,000 mark, eventually setting an all-time high above $126,000. So, ETFs are a direct reflection of the demand level,” TeraHash analysts.
Due to excessive leverage, whale profit taking, and lower expectations for corporate accumulation, Bitcoin is likely to stabilize at the $89,000–$95,000 range.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin Updates: Investors Move Away from Bitcoin and Ethereum ETFs While Solana and XRP See Increased Interest
- U.S. Bitcoin and Ethereum ETFs faced $5.58B in November outflows as investors shifted to Solana and XRP funds amid market selloffs. - BlackRock's IBIT led BTC outflows with $355.5M single-day withdrawals, while Fidelity's FETH attracted $95.4M ETH inflows. - Solana ETFs gained $476M since October debut, contrasting BTC/ETH declines, as analysts cite institutional profit-taking and risk-off positioning. - Recent stabilization saw $129M BTC and $78M ETH ETF inflows by Nov 25, though long-term structural ch
AI Industry's Profit Boom Fails to Ease Doubts Over High Valuations Amid Intensifying Sell-Off
- AI sector faces valuation skepticism despite strong earnings, with Nasdaq down 2.2% as investors shift to defensive stocks. - C3.ai's 26% monthly decline highlights challenges: 19% revenue drop, leadership changes, and uncertain Microsoft partnership monetization. - Decentralized GPU platforms like CUDOS Intercloud gain traction by offering cost-effective alternatives to cloud giants through smart contracts. - Palantir contrasts with 62.8% revenue growth and 40.3% net margin, leveraging NVIDIA partnershi
XRP News Today: Abu Dhabi’s Green Light Establishes UAE as a Pioneer in Stablecoin Development
- Ripple's RLUSD stablecoin gains Abu Dhabi regulatory approval as UAE advances digital finance leadership. - ADGM's "Accepted Fiat-Referenced Token" designation enables institutional use for lending and cross-border payments. - RLUSD's $1.2B market cap growth reflects institutional demand, backed by USD reserves and dual blockchain operations. - UAE's ADGM-DIFC regulatory synergy attracts global fintechs , with Ripple expanding partnerships across Africa and Asia. - Regulatory milestones position RLUSD to
Ethereum Updates: Ethereum Drops to $2,800, Prompting Surge in Demand for ZKP's Hardware-Based Presale
- Ethereum's price fell below $2,800, triggering $6.5M liquidations and testing critical support levels amid declining on-chain demand metrics. - Institutional players like BitMine accumulated 3.62M ETH (~$10.4B) despite the selloff, signaling long-term bullish conviction. - ZKP's hardware-driven presale gained traction with $17M in ready-to-ship Proof Pods and Miami Dolphins partnership for privacy-focused sports analytics. - Mutuum Finance's $19M DeFi presale and ZKP's auction model with $50K wallet caps
Trending news
MoreCrypto prices
More
