How ETF Inflows Affect BTC Price

Bitcoin (BTC) price depicts increasing uncertainty, but positive ETF inflows could augment the uptrend this weekend. As sentiment improves following positive inflation data based on the US CPI report, widespread gains are expected across top altcoins like Solana (SOL) and Ethereum (ETH).

Bitcoin Price Market Movers: BTC ETF Inflows Continue, BlackRock Flips Grayscale, Options Volume Spikes

• Bitcoin price held firmly above $58,000 in the wake of positive ETF inflows, as per SoSoValue data. Investors steadied their risk appetite, pumping Bitcoin ETFs with $11.11 million in daily total net inflow. Combined, the 12 ETF operators account for $17.33 billion of the cumulative total network. Bitcoin ETF inflows will continue bolstering the bullish outlook.

• BlackRock’s ETF comprising IBIT and ETHA has consistently outperformed other products, with its latest net positive streak toppling funds managed by Grayscale for the first time ever. According to Arkham, a blockchain data research company, BlackRock boasts $21.21 billion in managed ETF assets compared to Grayscale’s $21.2 billion held in GBTC, BTC Mini, ETHE, and ETH Mini.

BLACKROCK ETF HOLDINGS OVERTAKE GRAYSCALE FOR THE FIRST TIME

BlackRock’s ETFs IBIT and ETHA have just overtaken Grayscale’s ETFs GBTC, BTC Mini, ETHE and ETH Mini in on-chain holdings.

Blackrock ETFs now have the largest collective holdings of any provider.

BlackRock ETF… pic.twitter.com/PB41LEGc97

— Arkham (@ArkhamIntel) August 16, 2024

• While positive Bitcoin ETF volume is a positive factor for BTC price, mixed signals from the derivatives market may impede short-term growth. Bitcoin price futures open interest contracted by 2% to $29.41B, while options open interest shed 4.32% to $20.19B on Coinglass. Despite this, trading volume surges 28% to $74.91B.

• Remember, increasing volume with declining open interest (OI) and options OI hint at a potential market top or distribution phase for Bitcoin. This could lead to increased Bitcoin price volatility and a potential correction.

Bitcoin Price Prediction: BTC Poised To Breakout

Bitcoin price is expected to gain momentum with positive ETF inflows, which increase demand. It holds above the previous day’s open and sits within a larger rectangle pattern likely to ignite a modest 8% breakout to $66,376 if resistance at $62,000 is broken. The 61.8% Fibonacci level strengthens the rectangle support at $56,930, implying BTC price forecast is still in a safe zone to make a resounding recovery.

With the crypto fear and greed index at 27 highlighting fear, smart investors will continue to buy the dips, anticipating a larger breakout. This explains the BTC ETF inflows in the last week.

Nonetheless, the Bitcoin price recovery attempt must brace for potential selling pressure between $63,800 and $65,540. According to the IOMAP model, the 1.62 million addresses that bought 941.32k BTC in this range may choose to sell at respective breakeven points, pausing or blocking the rally to $70,000. On the downside, support seems to be shrinking with the most robust highlighted around $55,843.

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John Isige

John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

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.