Bitcoin

Bitcoin ETFs Record Over $400M Inflows, $62K BTC Price In Sight?

2 months ago
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Bitcoin ETFs saw over $400 million in inflows this week as bulls picked up the pace igniting price upticks. This comes after outflows the previous week as the price moved below $55,000. Bitcoin ETF remains a major determinant of market sentiment since its approval on Jan 10 by the United States Securities and Exchange Commission (SEC). 

Bitcoin ETFs Notch Weekly Inflows 

This week, spot Bitcoin ETFs recorded over $400 million in inflows ending the previous streak of outflows. This took the total number of Bitcoin bought to 6,892 BTC while producing 2,250 coins in the same period. This shows a sharp increase in demand for the crypto market leader as stakeholders set sights on bullish macro events. 

At the start of the week, BTC ETFs netted $28.6 million in inflows increasing the tempo the following day to $117 million with further positive results. On Sept 13, these products recorded $263.2 million inflows, the highest number since July 22. The change in fortunes for the asset leader has rippled through the industry leading to an uptick in the market cap. 

Fidelity’s FBTC saw $102 million in inflows on Sept leading the pack among Bitcoin ETFs while ArkInvest also recorded positive inflows. However, BlackRock’s IBIT showed no total inflows after starting the week in the red zone. After these products turned green following two weeks of net outflows, Matt Hougan, Bitwise CIO backed these funds pointing to massive institutional adoption amid recent talks of reduced optimism. 

Institutional Adoption Behind Price Recovery 

This year, Bitcoin ETFs pushed the crypto industry to new highs as traditional investors poured in funds. As expected, the wider market saw gains leading several assets to hit new all-time highs off Bitcoin’s momentum. Bitcoin’s price soared above $73,000 in Q1 2024 but has faced significant corrections below the $60,000 mark. 

Outflows from the previous week saw the price of the asset slump below $55,000 leaving a negative impact on the wider market. However, renewed institutional demand saw the price regain $60k before sliding below the resistance. At press time, Bitcoin price stands at $59,819 making a slight decline in the last 24 hours. Popular analyst Van de Poppe wrote on X that Bitcoin price could break out and continue above the $60k mark.

A major factor for the uphill movement in the asset is falling inflation in the United States and a projected cut in policy rates. This is expected to push inflows to risky assets with crypto as a huge beneficiary. Furthermore, MicroStrategy’s recent 18,300 BTC purchase worth approximately $1.1 billion points to heightened institutional demand for the asset. 

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David Pokima

David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source: https://coingape.com/bitcoin-etfs-record-over-400m-inflows-62k-btc-price-in-sight/