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>>Bitcoin price dips below $70,000 on 22 May. Market analysts eye a crucial level to watch for further movement.

Bitcoin price dips below $70,000 on 22 May. Market analysts eye a crucial level to watch for further movement.

crypthub

1/24/2025, 11:54:09 AM

Bitcoin's Recent Price Drop and Market Dynamics

Bitcoin (BTC) has witnessed a sharp decline, dipping below $70,000 with an intra-day low of $69,939, subsequently settling around $69,229. This fall is primarily attributed to waning investor confidence amidst growing concerns about a potential September Federal Reserve interest rate hike. The mixed ETF flow data further reflects this cautious sentiment, showing a significant reduction in net inflows to $15.7 million.

Expert Analysis and Optimistic Outlook

Despite the recent depreciation, Standard Chartered Bank's Geoff Kendrick expresses optimism about Bitcoin's future. He predicts that Bitcoin could surpass its previous high of $73,798 by the weekend, citing the expected approval of spot Ether ETFs as a catalyst for enhanced legitimacy and performance. Kendrick's bullish stance is further reinforced by his forecast that Bitcoin might reach $150,000 by the end of 2024 and $200,000 by 2025.

Record Inflows into Spot Bitcoin ETFs

Recent developments in the ETF market highlight a notable trend. BlackRock's spot Bitcoin ETF dominated the U.S. market on May 21, attracting 95% of the $305.7 million inflows that day, marking the highest surge since April 5. This influx of investments, totaling over $1 billion in the past four days, aligns with Bitcoin's price volatility. BlackRock's ETF has collectively gathered $16 billion in inflows since its launch, closing in on Grayscale's $20 billion milestone.

Impact of Ethereum ETF Approval on Bitcoin Market

The anticipated approval of Ethereum ETFs is believed to have reignited interest in Bitcoin ETFs, contributing significantly to the recent price appreciation of Bitcoin. This development, combined with the substantial inflows into spot Bitcoin ETFs, underscores the evolving dynamics and potential future trajectory of Bitcoin within the investment landscape.