{"id":75083,"date":"2024-04-03T03:09:47","date_gmt":"2024-04-03T07:09:47","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=75083"},"modified":"2024-04-03T03:10:35","modified_gmt":"2024-04-03T07:10:35","slug":"algorithmic-tracking-of-etf-flows-causes-market-volatility-in-asia","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/algorithmic-tracking-of-etf-flows-causes-market-volatility-in-asia\/","title":{"rendered":"Algorithmic Tracking of ETF Flows Causes Market Volatility in Asia"},"content":{"rendered":"\n

Significant algo trading resulted from the drying\u00a0inflows into spot Bitcoin ETFs<\/a>, which caused substantial BTC price volatility in Asian markets.<\/p>\n\n\n\n

\"Algorithmic<\/figure>\n\n\n\n

Asia's Bitcoin investors have been subjected to significant volatility as a result of the effects of automated trading protocols that respond to flows in US Bitcoin ETFs.<\/p>\n\n\n\n

Updates on the demand for spot Bitcoin ETFs circulate daily through the crypto market during Asian trading hours, following the close of US share trading.<\/p>\n\n\n\n

As a result of data indicating investors were withdrawing funds, Bitcoin and the broader cryptocurrency market suffered their largest monthly decline during the Asian morning session on Tuesday.<\/p>\n\n\n\n

Principal\u00a0trading firm Arbelos Markets' president, Shiliang Tang, said\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>:<\/p>\n\n\n\n

\n

\u201cFrom an algorithmic trading perspective, bots can basically auto-scrape this data and buy and sell based on this. It seems that\u2019s basically what is happening.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Bitcoin ETF Inflows Decrease<\/h2>\n\n\n\n

Conversely, the Bitcoin ETF market has also encountered periods of instability in recent times.<\/p>\n\n\n\n

During the first two weeks of March, inflows peaked, which coincided with Bitcoin's ascent to a record high of $73,798.<\/p>\n\n\n\n

However, after its historical zenith, the sector has encountered intermittent periods of outflows, resulting in an approximate 11% decrease in the value of the token.<\/p>\n\n\n\n

Charlie Morris, Chief Investment Officer of ByteTree Asset Management, stated that the broader ETF market holds around 5.5% of Bitcoin, compared to gold's 1% allocation.<\/p>\n\n\n\n

This, according to Morris, renders Bitcoin ETF flows more influential than gold ETF<\/a> flows.<\/p>\n\n\n\n

Additionally, Tang observed that this flow pattern clarifies the fluctuating market returns that occur during Asian trading hours.<\/p>\n\n\n\n

February and early March witnessed a discernible surge in strength, which was succeeded by a tumultuous descent in late March.<\/p>\n\n\n\n

\"Algorithmic
Courtesy: Bloomberg<\/figcaption><\/figure>\n\n\n\n

Furthermore, algorithmic protocols offloading BTC contributed to the liquidation of bullish crypto speculations totaling approximately $354 million on Tuesday, according to Coinglass data.<\/p>\n\n\n\n

The derivatives market may experience cascading effects as a result of this activity.<\/p>\n\n\n\n

Meanwhile, Tuesday saw the Bitcoin price plummet by more than 6%, falling to $65,400.<\/p>\n\n\n\n

The sector is anxiously anticipating the upcoming Bitcoin halving, a development that has the potential to cause a significant disruption in supply and propel prices upward.<\/p>\n","protected":false},"excerpt":{"rendered":"

Significant algo trading resulted from the drying\u00a0inflows into spot Bitcoin ETFs, which caused substantial BTC price volatility in Asian markets. Asia’s Bitcoin investors have been subjected to significant volatility as a result of the effects of automated trading protocols that respond to flows in US Bitcoin ETFs. Updates on the demand for spot Bitcoin ETFs circulate […]<\/p>\n","protected":false},"author":56,"featured_media":75090,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,83],"tags":[1613,18740,19026,16246,19027],"class_list":["post-75083","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-bitcoin-news","tag-bitcoin-etf","tag-bitcoin-etf-inflows","tag-bitcoin-etf-outflows","tag-bitcoin-price-analysis-2","tag-bitcoin-price-correction"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/04\/Algorithmic-Tracking-of-ETF-Flows-Causes-Market-Volatility-in-Asia-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/75083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=75083"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/75083\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/75090"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=75083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=75083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=75083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}