Bitcoin ETFs have seen a significant surge in trading volume, reaching the highest level since May 15th. According to a report by Santiment, a market intelligence platform, the combined trading volume for the top seven largest Bitcoin ETFs hit around $2.89 billion.
On the flip side, retail investor’s interest in Bitcoin has dropped to its lowest point in five months, mirroring a trend last seen in January. This drop, however, was followed by a remarkable 75% surge over the next two months.
Bitcoin ETF Volume Surges
The recent surge in Bitcoin ETF trading volume to its highest level in weeks has sparked curiosity among investors and analysts alike. Santiment’s report sheds light on this phenomenon, revealing a substantial surge in trading activity across the top 7 BTC ETFs including GBTC, IBIT, FBTC, ARKB, BTCO, BITB, and HODL.
The latest surge in Bitcoin ETF volume, reaching $2.89 billion, echoes previous patterns observed on March 5th, when volume peaked at an impressive $11.13 billion.
The latest increase in volume suggests a renewed interest among investors, possibly indicating a dip-buying reaction.
BTC ETF Outflow: 200Million
On the flip side, U.S. spot Bitcoin exchange-traded funds saw net outflows of $200 million on Tuesday, continuing the trend from Monday, which marked the end of their 19-day streak of net inflows.
Leading this charge, Grayscale experienced the largest net outflows, totaling $121 million, followed by Ark Invest with $56 million in net outflows.
Bitcoin To Rise 75% Amidst Drop
Meanwhile, CryptoQuant author Axel Adler, pointed out that Interest in Bitcoin from retail investors has dropped to the lowest level in five months, similar to what happened back in January. But back then, Bitcoin shot up by a whopping 75% in the next two months.
Adler notes a significant -17% average monthly change in Bitcoin demand among retail investors (<$10K). Previously, a similar -18% drop led to Bitcoin’s price skyrocketing from $40K to $70K after the approval of spot Bitcoin ETFs in the U.S.
Adler suggests that while retail demand for Bitcoin may currently be low, historical trends hint at the potential for a 75% surge, possibly propelling Bitcoin’s price to around $120k in the coming months.
As of now, Bitcoin is trading at $67,412, reflecting a 1.4% decrease in the last 24 hours. Despite this drop, trading volume has surged by 8%, reaching $31.3 billion, with a market cap of $1.32 trillion.
Also Read: Bitcoin ETF Tracker: May Month Performance Review and Insights
