Bitcoin Buy The Dip Interest Wanes Amid $50K Calls, BTC ETF Outflows Surge

Bitcoin and the broader cryptocurrency market are facing sharp correction as the fears of US recessions take a toll on Wall Street. All of the top three Wall Street indices fell anywhere between 1.5-2.5% on Friday while the Bitcoin price is currently down by 4.5% trading at $61.673 with its market cap at $1.21 trillion. Market sentiment shows that investors are currently now willing to buy the dips as of now.

Bitcoin Traders Call for $50K Levels

On-chain data provider Santiment stated that while the Bitcoin price has once again dipped to the early July levels, there’s not the same crowd enthusiasm or buying interest as it was in early July. Santiment believes that the psychological levels of $60,000 for BTC and $2,900 for ETH may be the triggers that prompt traders to start investing again.

On the weekly chart, the BTC price drop has surged to 10% with much of this drop coming in the last four days. With crypto markets retracing across the board, traders have been calling for BTC to drops to sub $50K levels. Santiment believes that a relief rally could be round the corner with this BTC drop.

The global macro sentiment has turned out to be largely bearish with the U.S. unemployment data hitting 4.3% for July against the expected 4.1%. Also, the Volatility Index (VIX) has surged to 28, the highest levels since since the regional banking crisis last year in March 23. However, QCP Capital notes that the BTC and ETH vols have hardly moved. “Front-end BTC ticked up from 45% to 48% while the back-end did not move,” it noted.

Also Read: Bitcoin & Crypto Cheques To Clear $35T US Debt, Donald Trump Says

BTC ETF Outflows Skyrocket

On Friday, the spot Bitcoin ETF outflows surged significantly to $237 million per the data from Farside Investors. Fidelity’s FBTC led the most outflows at $104 million while Ark Invest’s ARKB ranked second with $87.7 million in outflows. Only BlackRock’s IBIT and Grasycale’s BTC saw net inflows.

This massive outflows came despite Morgan Stanley announcing that it would allow qualified clients to seek exposure to BTC ETF. It seems that the global macros have taken an overall tall currently on the market.

Also Read: Peter Schiff Warns US Recession & Inflation Spike Ahead

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