Is Bitcoin Manipulated? Experts Explain ‘Small’ ETF Inflow Impact


The
US
spot
Bitcoin
Exchange-Traded
Funds
(ETFs)
have
been
witnessing
a
historic
run
of
inflows,
marking
17
consecutive
days
of
net
additions.
On
a
particularly
notable
Tuesday,
these

ETFs
observed
inflows
totaling
a
staggering
$886.6
million,
ranking
it
as
the
second-highest
single-day
influx
since
their
introduction.

This
was
followed
by
another
significant
day
of
inflows
yesterday,
amounting
to
$488.1
million,
with
notable
contributions
from
major
financial
players
like
Fidelity
($220.6
million),
Blackrock
($155.1
million),
and
Ark
($71.4
million).
Despite
these
hefty
capital
injections,
the
price
of
Bitcoin
has
demonstrated
a
relatively
subdued
response,
inching
from
$68,000
to
$71,000
since
the
beginning
of
the
week.

How To Get Free Crypto  

The
muted
price
movement
in
the
face
of
substantial
ETF
inflows
has
puzzled
many
market
participants
and
analysts.
Typically,
such
inflows
are
expected
to
exert
a
stronger
upward
pressure
on
Bitcoin
prices.
However,
the
observed
price
dynamics
suggest
that
other
counteracting
factors
might
be
at
play.

Why
Is
The
Bitcoin
Price
Not
Going
Higher?

Crypto
trading
analytics
platform
The
Kingfisher
offered
an

explanation
via
a
post
on
X,
suggesting
that
a
carry
trade
strategy
might
be
influencing
the
price
dynamics.
According
to
their
analysis,
“The
BTC
ETF
inflows
didn’t
affect
the
price
as
much
as
you
hoped
it
would?
It
might
be
due
to
a
carry
trade
being
loaded
up.
Short
Futures
+
Buy
Spot/ETF.”


Related
Reading

A
carry
trade
in
this
context
involves
shorting
Bitcoin
futures
while
simultaneously
buying
spot
Bitcoin
or
Bitcoin
ETF
shares.
This
strategy
can
hedge
against
potential
price
volatility
and
exploit
discrepancies
between
futures
prices
and
spot
prices.

JJ
the
Janitor
(@JLabsJanitor)
further

elaborated
on
the
strategy’s
mechanics.
He
drew
parallels
with
behaviors
visualized
on
the
PANDA
Terminal
charts,
explaining,
“When

big
boys
want
BTC
spot
filled
they
sell
futures
contracts
to
bring
price
into
bids.
When
they’re
filled
+
ready
to
let
it
rip
they
close
those
shorts,
hence
the
inverse
correlation
on
True

Coinbase Banner  

Open
Interest
(OI).”

His
remarks
hint
at
strategic
market
manipulations
that,
while
legal,
blur
the
lines
between
savvy
investment
tactics
and
potential
ethical
concerns.
His
follow-up
tweet,
“Market
manipulation
or
savvy
investment
strategy….what’s
the
difference?”
challenges
the
narrative
by
questioning
the
ethical
implications
of
such
strategies.


Related
Reading

The
discussion
prompted
further
scrutiny
from
the
crypto
community.
X
user
Sahra
critiqued
the
practical
implementation
of
the
carry
trade,
noting,
“Carry
trade
should
suppress
funding
rates
naturally.
Long
spot
pressure
against
the
perpetual
should
in
theory
cause
perpetual
rates
to
drop
(all
else
being
equal)
as
perpetual
would
begin
to
lag
spot.
Everything
else
makes
sense,
but
these
rates
are
far
too
low
to
justify
a
carry
IMO.”

This
comment
points
to
the
complexities
of
carry
trades,
where
expected
outcomes
like
suppressed
funding
rates
are
not
aligning
with
market
observations,
suggesting
that
other
forces
might
be
influencing
the
market.

The
Kingfisher
responded
to
Sahra’s
skepticism,
acknowledging
the
anomaly:
“That’s
right,
the
funding
remains
fairly
positive
though.
This
suggests
that
while
a
carry
trade
could
be
in
play,
it’s
not
the
dominant
force
in
the
market.
Other
factors,
like
bullish
sentiment
or
other
buying
pressures,
might
be
offsetting
the
expected
downward
pressure
on
funding
rates
from
the
carry
trade.”

FreeBitcoin Banner  

At
press
time,
BTC
traded
at
$70,803.

Bitcoin
price
stalls
at
$71,000,
1-day
chart
|
Source:

BTCUSD
on
TradingView.com

Featured
image
created
with
DALL·E,
chart
from
TradingView.com

Go to Source
Author: Jake Simmons


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