Is The Link Broken? New Analysis Shows Bitcoin’s Price Unmoved By ETF Liquidations

The evolvement of Bitcoin has led to Bitcoin’s trajectory being linked to several other markets, whereby the stance of certain markets could hint at where BTC is headed. However, according to the latest data, this phenomenon is changing specifically for the correlation of Bitcoin’s price to exchange-traded fund (ETF) movements. Related Reading: Is Now the Time to Buy Bitcoin? Top Analysts Predict $150K Surge On The Horizon Historical Patterns And Recent Deviations The latest observation from a CryptoQuant author on the QuickTake platform has revealed that BTC ETF, particularly the ETC Group Physical Bitcoin (BTCE), an investment fund based in Germany, which has shown a historical pattern of syncing with Bitcoin’s price movements, is now seeing a divergence in correlation. The analyst, Joao Wedson, disclosed that historically, increases in BTCE’s Bitcoin holdings have often aligned with substantial price rallies in Bitcoin itself. For instance, a significant accumulation in the fund’s reserves from 0 to over 23,480 BTC in 2020 coincided with Bitcoin’s surge to its first historic peak in April 2021. Conversely, a reduction in holdings has typically indicated a forthcoming drop in Bitcoin prices. Recent Trends and Changes in Fund Behavior “The historical correlation between BTCE and the Bitcoin price has shown a consistent pattern, where changes in the fund’s reserves generally precede movements in $BTC price.” – By @joao_wedson Link

Aug 15, 2024 - 14:00

Is The Link Broken? New Analysis Shows Bitcoin’s Price Unmoved By ETF Liquidations

The evolvement of Bitcoin has led to Bitcoin’s trajectory being linked to several other markets, whereby the stance of certain markets could hint at where BTC is headed.

However, according to the latest data, this phenomenon is changing specifically for the correlation of Bitcoin’s price to exchange-traded fund (ETF) movements.

Historical Patterns And Recent Deviations

The latest observation from a CryptoQuant author on the QuickTake platform has revealed that BTC ETF, particularly the ETC Group Physical Bitcoin (BTCE), an investment fund based in Germany, which has shown a historical pattern of syncing with Bitcoin’s price movements, is now seeing a divergence in correlation.

The analyst, Joao Wedson, disclosed that historically, increases in BTCE’s Bitcoin holdings have often aligned with substantial price rallies in Bitcoin itself.

For instance, a significant accumulation in the fund’s reserves from 0 to over 23,480 BTC in 2020 coincided with Bitcoin’s surge to its first historic peak in April 2021. Conversely, a reduction in holdings has typically indicated a forthcoming drop in Bitcoin prices.

Recent Trends and Changes in Fund Behavior
“The historical correlation between BTCE and the Bitcoin price has shown a consistent pattern, where changes in the fund’s reserves generally precede movements in $BTC price.” – By @joao_wedson
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