Bitcoin ETFs Withdraw $411 Million After Bitcoin Hits $75,000, But Analysts Urge Caution.

Spot the United States Bitcoin ETFs The economy continues to attract significant inflows in April, with experts pointing to easing geopolitical tensions and improved risk appetite among investors.

Bitcoin exchange-traded funds attracted $411 million on Tuesday, marking the second-largest inflow for the month after $471 million on April 6, according to… SoSoValue Data. The influx coincides with the recent rally of the leading cryptocurrency in April.

Bitcoin It rose from about $68,100 on April 1 to $75,600 on Tuesday, marking a gain of more than 10%, according to CoinGecko data. Over the past 24 hours, it has fallen by about 1% and is currently trading at around $73,860.

According to Tim Sun, senior researcher at HashKey Group, there are two reasons for this bullish leg.

“A temporary easing of geopolitical conflicts, which stimulated a marginal recovery in global risk appetite and a fundamental improvement in the liquidity environment,” Son said. Decryption.

Sun also explained that the significant recovery in net market liquidity observed since early April has also helped improve risk appetite, especially for traditional risk assets such as the S&P 500 and Bitcoin.

“Therefore, the combination of a rebound in risk appetite and rising liquidity temperature quickly pushed Bitcoin above $75,000,” he said.

This shift is evident in market metrics. Investors’ improved appetite for risk can be seen across multiple measures of perpetuals and options; The Coinbase Premium Index, which shows demand from US investors, has been positive since April 8. Additionally, the improved delta 25 skew shows easing of selling pressure from options investors, as noted in a previous report. Decryption a report.

Downside risks remain

Experts remain skeptical that a sustained uptrend will emerge from this.

“It is important to keep the broader context in mind,” said Georgiy Verbitsky, derivatives trader and founder of TYMIO. Decryption. “The market continues to look weak and unstable, more consistent with a bearish or transitional phase than a strong uptrend.”

He added that investor expectations for large, sustained moves “should remain low,” and investor sentiment should remain “cautious.”

The mixed signals are reflected in the prediction market Countlessowned by Decryption Parent company Dastan. Users now see a 59% chance The next major move for Bitcoin will be a push to $84,000, down from 64% the day before.

At the same time, the possibility of a crypto “boom” in the spring has increased to 51%, Up from 35% on April 1.

Other downside risks that could undo Bitcoin’s rally to $75,000 include tax season in the US, which typically lasts from mid-to-late April. This period can include rebalancing the portfolio and maintaining a cap of upside.

“Based on the Treasury’s financing and cash management rhythm, the Treasury’s general account balance will likely return to more than $1 trillion. This means that the Treasury will once again withdraw liquidity from the market system, potentially suppressing highly resilient assets like Bitcoin.” Sun explained.

If the range from $73,000 to $75,000 continues, and downside risks do not double, Sun highlights $79,000 as the next key level to watch.