Can Spot Bitcoin ETF Inflows Drive BTC to $80,000?

Spot Bitcoin exchange-traded funds (ETFs) registered a record $1.38 billion inflows on November 7, marking the highest single-day inflow since the products launched in January. 

The record-breaking $1.38 billion inflows into spot Bitcoin ETFs occurred just one day after Donald Trump’s victory in the US presidential election, fueling speculation that investors see his win as a positive signal for the crypto industry. But what’s next for BTC?

BlackRock Leads the Historic Inflows

According to comprehensive crypto data provider SoSo Value, Bitcoin ETFs’ net inflow on November 6 was $621.90 million, a significant hike from the flows of the previous three days.

But the groundbreaking inflows came yesterday, majorly due to accumulation from the world’s largest asset manager, BlackRock. Based on Farside Investors data, Blackrock registered inflows worth $1.11 billion on the said date

Following BlackRock closely was Bitwise’s Bitcoin ETF (BITB), which had a significant $190 million inflow. Although other issuers also recorded inflows, none approached the impressive hundred-million or billion-dollar levels.

Read more: Who Owns the Most Bitcoin in 2024?

Bitcoin spot ETFs inflows
Bitcoin ETF Inflows. Source: SoSoValue

As mentioned earlier. this influx suggests that investors are positioning themselves for a potentially more crypto-friendly regulatory environment under Trump.

Regarding this, Matt Hougan, Chief Investment Officer at Bitwise, said that a good regulatory environment is great for investors. 

“A pro-crypto regulatory environment will provide air cover for institutional investors who have long wanted to allocate to the space. It’s a game-changer,” Hougan posted on X

Additionally, Bitcoin’s price reached a new all-time high, initially breaking records following Trump’s victory on Wednesday. Just hours ago, BTC surged to $76,943 before pulling back slightly to $75,915 at press time.

Another factor in Bitcoin’s climb may be the Federal Reserve’s recent decision to cut interest rates by 25 basis points (bps).

Following this development, predictions have emerged suggesting that BTC could reach $100,000. Meanwhile, the Pi Cycle Top indicator, using Glassnode data, presents an even more ambitious outlook, suggesting that BTC could climb as high as $117,496.

Bitcoin price analysis
Bitcoin Pi Cycle Top. Source: Glassnode

BTC Price Prediction: On Track to Hit $80,000

After facing rejection several times around $71,484, Bitcoin is now trading within an ascending channel. An ascending channel is a price pattern in which the price action moves within upward-sloping parallel lines, marked by higher highs and higher lows.

With the pattern already in place, there is a high chance that BTC’s rally could continue all the way to $80,066 in the short term. However, the cryptocurrency might need the spot Bitcoin ETF inflows to sustain the billion-dollar momentum for that to happen.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

Bitcoin price analysis
Bitcoin Daily Analysis. Source: TradingView

If that is the case, the forecast might be validated. On the other hand, a pullback to $71,484 could invalidate this thesis. If that happens, then Bitcoin’s price could drop to $66,650.

Disclaimer

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Source: https://beincrypto.com/spot-bitcoin-etfs-see-record-inflows/