Bitcoin exchange-traded products aid in crypto market stability

Although token prices suddenly declined on May 27, steady inflows from the Bitcoin exchange-traded products helped arrest the dip, leading to neutral sentiments.

The crypto market swayed with much higher volatility in the last few hours of May 27, with Bitcoin experiencing a dip. However, Bitcoin exchange-traded products (ETPs) held their stability with regular inflows. This factor could have helped stop the decline, as the ETP investors negated the bearish action.

Meanwhile, crypto asset manager and tracker HODL15 Capital highlighted how the Bitcoin ETPs hold more than 1 million BTC at present. The numbers started picking up after the US spot ETF approvals. At the same time, this figure has the scope to rise even further in the future.

Another spotlight in the last few days has been Ether’s price. Despite the higher crypto volatility, ETH experienced no major declines in its price. However, it has been experiencing some resistance at $3,900. In Bitcoin’s case, this resistance is firm at $69,000. Even after BTC briefly crossed $70,000 on the previous day, it couldn’t manage to consolidate above that level.

Analysts have also stated that the latest market slowdown was due to a defunct crypto exchange that recently saw huge BTC transfers. According to reports, billions of BTC were moved from the exchange to unknown addresses.

Once the bearish response to this event subsides, Bitcoin may start recovering.

BTC/USD 1D price chart

Bitcoin is currently trading at around $67,900 on May 28, 2024, with BTC/USD trading lower by a margin of 0.89% in the last 24 hours. Bitcoin’s market cap was trading at around $ 1.34 trillion in the last 24 hours.

BTC/USD is trading higher than its 20-day EMA (64,800.23), as BTC’s 24-hour volume was at around $29.59 billion. The global crypto market cap decreased by around 0.68%, trading above $2.55 trillion. BTC’s year-to-date returns are at 61.90%.

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