Historical Patterns And Recent Deviations
The latest observation from a CryptoQuant author on the QuickTake platform has revealed that BTC ETF, particularly the ETC Group Physical Bitcoin (BTCE), an investment fund based in Germany, which has shown a historical pattern of syncing with Bitcoin’s price movements, is now seeing a divergence in correlation.
For instance, a significant accumulation in the fund’s reserves from 0 to over 23,480 BTC in 2020 coincided with Bitcoin’s surge to its first historic peak in April 2021. Conversely, a reduction in holdings has typically indicated a forthcoming drop in Bitcoin prices.
Recent Trends and Changes in Fund Behavior “The historical correlation between BTCE and the Bitcoin price has shown a consistent pattern, where changes in the fund’s reserves generally precede movements in price.” – By Link 👇 — CryptoQuant.com (@cryptoquant_com)
However, a shift in this pattern has been observed since January 2024. Despite the fund’s Bitcoin reserves decreasing from a peak of 27,980 BTC to below 17,000 BTC, the anticipated decline in Bitcoin’s price hasn’t materialized to the extent predicted by past trends.
Bitcoin Market Performance And Future Outlook
Bitcoin is trading for $59,144 at the time of writing, following a 3.6% dip in the past 24 hours. According to the latest , this decline comes after the US inflation fell to 2.9%, the lowest since 2021.
Amid this price performance, Economist and Trader Mikybull Crypto on X, has pointed out the potential rally for Bitcoin.
This rally, according to the analyst is based on the global liquidity index breaking out of a 2-year resistance. Mikybull Crypto :The BTC correlation with the global liquidity index is quite strong. This indicates that Bitcoin strong and massive rally is looming.Featured image created with DALL-E, Chart from TradingView