Crypto Market Retrace Sparks Calls For Sub-$50K BTC As ETF Dynamics Shift

The crypto markets have experienced a significant retrace, leading traders to once again speculate on Bitcoin (BTC) dropping below the $50K mark.

Historically, when the 7-day average trader returns for top cryptocurrencies like BTC, ETH, ADA, XRP, DOGE, and LINK are low, the likelihood of a market bounce increases considerably.

On August 2nd, Bitcoin spot ETFs saw a substantial net outflow totaling $237 million. Specifically, the Grayscale Bitcoin Trust (GBTC) recorded a single-day outflow of $45.9462 million. Fidelity’s Bitcoin ETF (FBTC) experienced a significant single-day net outflow of $104 million. In contrast, BlackRock’s iShares Bitcoin Trust (IBIT) noted a single-day inflow of $42.8142 million.

More Bitcoin Exposure Happening Soon

In a groundbreaking move, Morgan Stanley will allow its 15,000 financial advisors to offer Bitcoin ETFs to clients starting August 7. This initiative marks the first instance of a major Wall Street bank entering the Bitcoin ETF space. The ETFs available will include BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund. However, this offering will be limited to clients with high net worth and a high tolerance for risk.

As the crypto market navigates these fluctuations, the interplay between large-scale ETF transactions and institutional involvement may play a crucial role in determining Bitcoin’s trajectory. With major financial institutions like Morgan Stanley entering the fray, the landscape of crypto investments is poised for potential shifts, providing both opportunities and challenges for traders and investors alike.

Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.

Will Izuchukwu: