Bitcoin ETFs and Institutional Investors Facing Losses

Bitcoin ETFs- Bitcoin Faces Critical Support Levels: ARK Invest’s Latest Insights

Bitcoin ETFs– Bitcoin BTC is at a pivotal moment as it encounters significant support challenges, according to recent research by ARK Invest.

Key Support Levels for Bitcoin

In its latest monthly report, ARK Invest highlights that Bitcoin’s critical price levels are now at $52,000 and $46,000. The report underscores that Bitcoin has struggled to recover since ending August with a nearly 9% decline.

Bitcoin’s Support Levels Under Pressure

Bitcoin has not been able to maintain key support levels, including the 200-day moving average and short-term holder cost basis, which are marked at $63,693 and $63,245 respectively. A chart detailing mean reversion suggests that the $46,000 level is crucial for maintaining support, with ARK Invest adopting a “bearish” stance.

Institutional and ETF Challenges

ARK’s report notes that Bitcoin holders in U.S. spot Bitcoin ETFs might be facing losses, as the estimated cost basis for ETF participants is above Bitcoin’s current price. This suggests that many ETF investors may be in the red, as BTC/USD is trading around $58,000.

Positive Market Indicators Amidst Bearish Sentiment

Despite the current bearish outlook, ARK Invest points to several positive market aspects. These include Bitcoin’s price drawdowns staying within historical norms, low short-term holder liquidations, and favorable macroeconomic conditions.

Bitcoin’s MVRV Z-Score and Market Conditions

The Bitcoin MVRV Z-score, which measures market cap against its cost basis, remains in bull market territory at 1.6, compared to its mean of 1.42. This suggests that while Bitcoin is facing challenges, there are still indicators of potential bullish trends.

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