Bitcoin Faces Price Pressure Amid Rising Institutional ETF Interest

In the world of cryptocurrency, Bitcoin (BTC) is showing signs of possible price weakness as large institutional buying increases. Popular trader Skew recently shared his analysis, pointing out a potential “headline curse” connected to substantial investments in Bitcoin exchange-traded funds (ETFs). On July 23, reports indicated that US spot Bitcoin ETFs had accumulated over $533 million, the largest influx seen since March. Despite this bullish trend, Skew cautioned that such significant inflows have often led to profit taking and selling pressure on Bitcoin’s price in the past.

As Bitcoin’s price hovered around $66,550, down 1.5% for the day, the market is evaluating its ability to maintain the current demand and momentum. Skew mentioned that consistent demand for Bitcoin and effective seller absorption will be crucial for sustaining these levels and seeing further price increases. Although these inflows indicate interest from institutions, traders are wary, recalling that previous surges in ETF investments have coincided with price corrections for Bitcoin.

Meanwhile, the recent launch of Ethereum (ETH) ETFs has failed to generate a buzz in the market. While Bitcoin saw significant price movement prior to its ETF launch in January, Ethereum has shown little change since its ETFs began trading on July 23, with prices remaining flat. Notably, ETH is only up 1.5% over the past week, leading some analysts, such as those from trading firm QCP Capital, to suggest that the muted response could be seen as a negative indicator. Market observers believe that several months may be needed to accurately assess the demand for spot Ether ETFs.