Bitcoin ETF Slowdown A Short Pause, Not a Negative Trend: Bernstein Says BTC Trading 2% Lower

According to a report from the broker, the recent slowdown in Bitcoin exchange-traded funds (ETFs) inflows to Bitcoin (CRYPTO: BTC) is a temporary pause and not a negative trend Amber.

What happened: Bernstein's research report suggests that the current slowdown in Bitcoin ETF inflows represents merely a short-term pause before these funds become more integrated into private banking platforms, wealth advisors and additional brokerage platforms, CoinDesk reported on Monday. The report notes that the world's largest cryptocurrency fluctuated in price and there was no clear momentum on either side after the halving.

The report written by analysts Gautam Chhugani And Mahika Sapraexplains: “There is a natural evolution period until Bitcoin becomes an acceptable recommendation for portfolio allocation and platforms establish the compliance framework for selling Bitcoin ETF products.”

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Bernstein maintains his prediction of a Bitcoin cycle high of $150,000 by 2025 as “the unprecedented inflows of ETF demand have further strengthened our conviction.”

The report also notes that the post-halving Bitcoin mining cycle remains healthy and leading players continue to consolidate market share. Bitcoin network fees have normalized to a whopping 10% of miners' revenue following the post-halving surge. The quadrennial reward halving that took place earlier this month has slowed the growth rate of Bitcoin supply.

Why it matters: Cryptocurrency analyst Willy Woo had predicted that the launch of Bitcoin ETFs could potentially push the price of Bitcoin above that of gold. However, there was a significant outflow from Bitcoin ETFs, contradicting the earlier bullish sentiment.

I support this outlook, experienced trader Lark Davis described Bitcoin's current consolidation phase as “the calm before the storm” and hinted at a possible upswing in the future.

Price promotion: According to Benzinga Pro, Bitcoin was trading 1.79% lower at $62,359.00 at the time of writing.

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