Bitcoin Breaks $65K With $365 Million In Spot ETF Inflows Fueling The Rally
28 September 2024 - 10:30AM
NEWSBTC
Bitcoin has been the subject of recent media attention, not only
due to its price increase above $65,000 but also due to the
extraordinary inflows into spot Bitcoin ETFs. These inflows,
according to Farside Investors, have reached a remarkable $365
million as of September 26, 2024, which is indicative of the
increasing institutional interest in the cryptocurrency market.
Related Reading: Stacks: New Network Upgrades Push STX Price Up By
18% – Details Record Inflows Amid Market Optimism The biggest daily
flow for the month came from BlackRock’s Bitcoin ETF, which surged
about $184 million on September 25, 2024. This spike coincides with
withdrawals from numerous other ETFs, indicating a significant
change in institutional investors’ view. Although there were just
$2.1 million in inflows into other platforms such as the Bitwise
Bitcoin ETF, BlackRock’s performance is noteworthy and serves as a
ray of hope among the market’s volatility. For the past five days,
there has been a positive cumulative inflow of around $497 million
into US spot Bitcoin ETFs. The Federal Reserve’s recent move to
lower interest rates by 50 basis points is partly the reason for
this increase since it has prompted investors to look for other
assets like Bitcoin. The overall digital asset investment products
have also seen a second consecutive week of inflows, totaling
approximately $321 million, with BTC being the primary focus,
accounting for about $284 million of that total. Institutional
Trust And Financial Aspects The present surge of money into Bitcoin
ETFs indicates a bigger trend in which institutional investors are
beginning to view Bitcoin as a tactical asset. Further supporting
the positive outlook are economic factors such the Federal
Reserve’s dovish stance, which has calmed investors about likely
economic stability. The CEO of CryptoQuant, Ki Young Ju, stressed
that strengthening the US’s standing as a pioneer in the
cryptocurrency space depends on the increasing demand for spot
Bitcoin ETFs. The 🇺🇸U.S. is regaining dominance in #Bitcoin
holdings. Its ratio compared to other countries is rising, driven
by spot ETF demand. Only known entities are included.
pic.twitter.com/a9XOb5134E — Ki Young Ju (@ki_young_ju) September
26, 2024 It’s interesting to note that although BlackRock’s ETF
performs well, other ETFs, including Ark 21Shares Bitcoin ETF and
Fidelity’s Wise Bitcoin Origin Fund, have seen large withdrawals of
$33.2 million and $47.4 million, respectively. Related Reading:
Worldcoin Soars 31%: Will Network Upgrades Push WLD Price Higher?
The Investment Landscape For Bitcoin In The Future As Bitcoin’s
value and popularity continue to grow, analysts are keeping a
careful eye on how these inflows could affect future price moves.
Over 90% of Bitcoin holders are currently in profit due to this
price surge, which raises concerns about potential sell-offs as
investors look to realize gains. Based on past patterns,
significant price adjustments could take place should a sizeable
fraction of holders show gains. To make matters more complicated,
there are about $5.8 billion worth of options contracts that are
about to expire. Traders will be watching $66,000 and other
important resistance levels closely, as a break over this level may
spark additional positive momentum. Featured image from WIRED,
chart from TradingView
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