$250 Million Bitcoin in 24 Hours: Here’s What’s Happening

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As a seasoned researcher with over two decades of experience in the financial markets, I’ve witnessed countless market fluctuations and trends. The recent surge in Bitcoin ETF purchases is certainly one that piques my interest. With $250 million worth of BTC acquired in a single day, it’s hard not to take notice.

Significant progress: Bitcoin Exchange-Traded Funds (ETFs) have bought a massive amount of Bitcoin, approximately $250 million within the last 24 hours. This is the largest single-day purchase by Bitcoin ETFs in more than a month, as reported by blockchain data provider Arkham Intelligence.

According to Arkham Intelligence’s latest tweet, there has been an increase in purchases for Bitcoin ETFs. In fact, they bought approximately $250 million worth of Bitcoin yesterday, which is the highest amount in over a month.

Yesterday, Bitcoin ETFs purchased approximately $250 million worth of Bitcoin – marking the largest acquisition in over a month.

— Arkham (@ArkhamIntel) September 17, 2024

Investment products tied to Bitcoin (Bitcoin ETFs), which enable investors to participate in the Bitcoin market without physically owning the cryptocurrency, have been consistently adding more Bitcoin to their portfolios. A significant spike, as noted by Arkham Intelligence, indicates that these ETFs purchased approximately $250 million of Bitcoin in a single day. This large-scale purchase represents the highest level in over a month, causing curiosity and debate about the factors behind this rise.

There are several possible reasons driving the current surge in Bitcoin ETF buying, although the specific cause remains undetermined. The cryptocurrency sector is preparing for the potential effects of the Federal Reserve’s meeting taking place on Tuesday and Wednesday, where it’s anticipated that interest rates could be reduced for the first time since March 2022’s rate hike initiation. If interest rates are indeed lowered this week, it could significantly influence risk assets such as cryptocurrencies.

Bitcoin reverses weekly outflows

As per the latest report from CoinShares, digital asset investment products underwent a turnaround, recording inflows amounting to $436 million after a phase of $1.2 billion worth of outflows.

Toward the end of last week, there was a significant increase in investments that might be linked to a significant change in market predictions for a possible 50-basis-point reduction in interest rates on September 18, following remarks made by former New York Federal Reserve President Bill Dudley. Bitcoin was the main recipient of these inflows, receiving approximately $436 million after experiencing a 10-day outflow of $1.18 billion.

Over the coming weeks, it’s essential to observe if the recent spike in ETF purchasing is simply a fleeting fashion or the start of a more significant accumulation phase that could potentially boost Bitcoin prices.

At the time of writing, BTC was up 4.82% in the last 24 hours to $60,082 and up 6% weekly.

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2024-09-17 18:37