Key facts: Bitcoin ETFs had 5 days of positive capital flows. The inflow of money into the ETFs partially offset the sales made by the German government. Even though the price of bitcoin (BTC) has dropped by as much as 20% in the last month, not only did most investors maintain their positions in the digital currency-based ETFs, but there was even more money flowing in. This means that, Even though the price of bitcoin fell, more people and entities bought the asset (indirectly, through ETFs), which offset the fall in its price. Eric Balchunas, an ETF specialist, mentions that the «baby boomers held firm in bitcoin.» This is the name given to people born between 1946 and 1964. This demographic group has been investing in bitcoin ETFs even more than he expectedthe specialist says. This has helped support the price of BTC and the total net number of inflows into ETFs to date which remains at $15 billion. In the words of the Bloomberg specialist, it is important to hold firm on investments during market declines, as this can have a positive impact in the long term. This means that while it is normal to feel fear when the price of investments goes down, it is important not to sell them in panic, as they could rise again in the future. One of the sources of BTC for boomer investors has been the spot bitcoin ETFs issued in the United States. That was reflected in the ETFs, as They had 5 days of positive capital flows in the order of 737 million dollarsas seen in the following chart from SoSoValue.
Capital inflows and outflows from BTC ETFs. Source: sosovalue.xyz. The types of investors who chose to invest in ETFs are called “diamond hands.” This refers to an investor’s ability to maintain their positions in financial assets regardless of market volatility. The fall in the price of BTC was influenced, in part, by the sale of digital currencies held by the German state. The government of the European country sold a total of 50,000 BTC that it held. However, this is something that investors in bitcoin ETFs took advantage of. The inflow of money into the funds partially offset the sales made by Germany. While bitcoin in the last few hours has shown recovery rising to almost 60,000 The dollar has not yet managed to stay close to that point, as seen in the following TradingView chart.
BTC Price: TradingView. As reported by BitcoinDynamic, the key level to watch right now is $58,000 since, if it does not consolidate above soon and seeks $60,000 or $62,000 again, it could fall between $50,000 and $53,000, according to technical analysis.