CryptoQuant CEO, Ki Young Joo, predicts a revival of the Bitcoin ETF spot market if the price of BTC declines further.

In a statement on March 22, Ki Young Joo noted that net flows of spot Bitcoin ETFs could increase even as BTC prices continue to fall. Based on an analysis of historical net flow trends, the CEO points out that demand for Bitcoin ETFs typically occurs when the cryptocurrency reaches certain support levels.

According to analytics firm BitMEX Research, spot Bitcoin ETFs have seen negative net flows over the past four trading sessions. This indicates a continued outflow of funds from the Grayscale Bitcoin Trust ETF and a decrease in inflows into other Bitcoin ETFs.

Ki Young Joo also notes that new major players in the BTC space, especially ETF buyers, are showing interest at around $56,000. He predicts that significant inflows into ETFs will resume if the price of Bitcoin drops to this level.

Last week, the price of Bitcoin fluctuated between $62,000 and $68,000. It is believed that further price declines are possible, especially given that corrections typically result in a maximum drop of around 30%. This could push Bitcoin down to around $51,000 from its recent all-time high of $73,750.

Bitcoin's recent correction was caused by overheated market conditions known as the "halving pullback" leading up to the Bitcoin miner reward halving event scheduled for April.

The CryptoQuant report also indicates that Bitcoin's bull cycle is not yet over, given the relatively low level of investment flows from new investors and price performance that is still below the levels seen at past market tops.

The halving event has historically been considered an important factor for the price of BTC to rise, which has often resulted in a parabolic uptrend.