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Bitcoin is underperforming, you can blame the ETFs for that

Bitcoin ETFs report, May 2024

Ecoinometrics

May 1

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Preview

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Bitcoin is down -15% in April. That’s not the end of the world. But in a year that has seen the launch of the spot Bitcoin ETFs and the halving that’s a bit disappointing.

The number one reason for this underperformance is the demand coming from the ETFs completely drying up in April.

But that’s not the ultimate root cause.

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Bitcoin is underperforming, you can blame the ETFs for that

The takeaway

There is no mystery has to why the Bitcoin bull market went from being at full strength to being at full stop.

The ETFs have been the main driver of the demand since the start of the year. And now that demand is vanishing. Worst, in the past week the ETFs have even shifted to being net sellers.

You cannot expect Bitcoin to perform well in that setting.

Now the root cause of the demand drying up is to be found at the macro level. BTC isn’t the only major asset to perform poorly this month.

But while we wait for better days, more data means we can refine our model linking the ETFs flows to the evolution of Bitcoin’s price. So far we find that:...

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