Bitcoin Price Tumbles Amid VanEck ETF’s Volume Surge: What Happend?
21 Fevereiro 2024 - 10:00AM
NEWSBTC
Bitcoin experienced a tumultuous day yesterday, with its price
briefly touching $53,000 before plummeting to a low of $50,820.
Amid this price volatility, an unexpected phenomenon caught the eye
of market analysts: a dramatic surge in trading volumes for certain
Bitcoin ETFs. Bloomberg’s Eric Balchunas provided a detailed
account of this anomaly on X, particularly focusing on the VanEck
Bitcoin ETF (HODL) and its astonishing increase in trading volume.
He remarked, “HODL is going wild today with $258m in volume
already, a 14x jump over its daily average, and it’s not one big
investor… but rather 32,000 individual trades, which is 60x its
avg.” This level of activity was not only unexpected but also
unprecedented, sparking widespread speculation and analysis within
the financial community. The unusual trading volume wasn’t isolated
to HODL alone. Wisdom Tree’s Bitcoin ETF (BTCW) and BlackRock’s
Bitcoin ETF (IBIT) also saw significant upticks in trading
activity, albeit to varying degrees. Related Reading: The Bitcoin
“Big Money Algos” Are Here: Will BTC Breach $70,000? Balchunas
pointed out, “BTCW also popping off, $154m trades, 12x its avg and
25x its assets via 23,000 indiv trades.” However, he noted that the
volume increase in IBIT, while elevated, did not reach the
“extraordinary levels” observed in HODL and BTCW. What’s Behind The
Sudden Spike In Bitcoin ETF Volumes? Addressing theories that the
ETF volume surge was driving Bitcoin’s price drop, Balchunas
offered a rebuttal, “To the ‘bruh volume must be selling bc btc is
dumping’ crowd: a) that makes no sense given how little these ETFs
had in existing aum/shareholders b) plus you never see ton of
outflows in brand new ETF that is in rally mode c) there are so
many other holders of btc besides ETFs! d) how can you call it
‘dumping’ when it is down 1% after 20% rally in two weeks?” Related
Reading: Finance Expert Predicts Bitcoin Will Touch $100,000 Soon,
Here’s When However, the source of this sudden and explosive
increase in trading volume remains a mystery, with Balchunas
speculating, “Still haven’t figured out what happened. No one
knows. Given how sudden and explosive the increase in number of
trades was… I’m wondering if some Reddit or TikTok influencer type
recommended them to their followers. Feels retail army-ish.” He
also considered the possibility of market makers trading among each
other but found it an unlikely explanation given the liquidity of
other Bitcoin ETFs like IBIT and BITO. The trading day concluded
with “The Nine” achieving a record-breaking volume day, thanks to
significant contributions from HODL, BTCW, and BITB, which all
shattered their previous records. Balchunas highlighted the
significance of this trading volume, stating, “For context $2b in
trading would put them in Top 10ish among ETFs and Top 20ish among
stocks. It’s a lot.” As the dust settles on this unprecedented day
of trading, the Bitcoin community continues to grapple with the
implications of this volume surge on Bitcoin ETFs and its potential
impact on the market. The exact catalyst behind this phenomenon
remains elusive, with analysts and investors alike keenly awaiting
further developments. At the time of going to press, BTC fell below
the $51,000 mark again and initially found support at the EMA100 on
the 1-hour chart. Featured image created with DALL·E , chart from
TradingView.com
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