In recent months, conversations have swirled around the death of the typical four-year cycle and a shift in the Bitcoin market structure, with the spot exchange-traded funds (ETFs) providing fresh, consistent liquidity. However, the latest on-chain data shows that BTC ETF investors could be under pressure in the coming days.
The relevant metric here is the Bitcoin US ETF Realized Price, which tracks the average purchase price of BTC held by United States-based exchange-traded funds. This indicator offers insights into the profitability of institutional investors and holders.
As observed in the chart above, the Bitcoin US Exchange-Traded Funds Realized Price currently stands around $79,300. IT Tech said that the ETF buyers often feel “smart” when above the realized price, while they feel panic (as seen with most retail investors) when below their cost basis.
According to the on-chain analyst, these ETF investors are not accustomed to Bitcoin price declines. Hence, this group of exchange-traded fund holders or “new retail,” who have not been tested before, could enter a phase of panic selling should they go underwater.
As of this writing, the price of BTC stands at around $84,500, reflecting an over 2% decline in the past 24 hours. According to data from CoinGecko, the flagship cryptocurrency is down by more than 11% in the past week.
