As a seasoned crypto investor with a decade of experience under my belt, I must say that the current market trends are reminding me of a roller coaster ride – exhilarating, nerve-wracking, and always unpredictable. The steady Bitcoin price above $66,000 is reassuring, but breaking the psychological round at $70,000 seems to be an elusive goal for now. However, the surge in demand for spot Bitcoin ETFs gives me a glimmer of hope.
On October 25, Bitcoin prices are holding firm above the $66,000 mark, demonstrating stability. Despite the optimism, it remains below the significant $70,000 threshold, which represents a psychological round figure. As of now, it has not managed to dislodge the early October sellers.
Demand For Spot Bitcoin ETFs Shoots To A 6-Month High
On the other hand, the increasing popularity of Bitcoin ETFs as seen in recent trends suggests a shift. According to Ki Young Ju’s latest analysis from CryptoQuant on October 25, there’s been a surge in demand for these cryptocurrency derivative products over the past month.
In recent times, there’s been a significant surge in interest for Bitcoin Exchange-Traded Funds (ETFs) available on the spot market within the U.S., reaching a peak not seen in six months. This surge has attracted approximately 64,900 Bitcoins in total inflows.
Measuring net flows, or the difference between incoming and outgoing funds during the test period, can help determine institutional interest. When this figure increases, particularly alongside growing inflows, it indicates that more institutions are investing in Bitcoin, often referred to as digital gold. As institutional interest grows, there’s a higher probability that Bitcoin prices will rise further.
According to data from Soso Value, American financial institutions collectively hold more than $66 billion in assets. On October 24th alone, investors purchased approximately $188 million worth of Bitcoin through these institutions. As of now, BlackRock is the largest of these entities, holding over $27 billion in Bitcoin, managed via its IBIT division.
For several months now, there have been significant withdrawals from Grayscale’s GBTC. Specifically, on October 24th, approximately $7 million worth of Bitcoin was withdrawn from GBTC.
Will Institutions Push BTC Above $70,000?
It’s widely anticipated that the U.S.’s approval of Spot Bitcoin ETFs could open up a new path for institutions to influence Bitcoin prices. Prior to this, many had gained exposure to Bitcoin through approved Trusts like those provided by Grayscale.
Simultaneously, certain institutions chose to purchase MicroStrategy stocks since the company’s strong performance mirrored that of Bitcoin, due to its significant investment in this digital currency.
As per Bitcoin Treasuries, MicroStrategy is the global leader among publicly traded companies in holding over 250,000 Bitcoins. Since adopting a strategy to regularly accumulate Bitcoin, their stock (MSTR) has consistently outperformed top American stocks and indices for several years.
Time alone will reveal if Bitcoin’s bulls possess the strength to surpass $70,000, a significant round figure that represents previous highs in September. Should Bitcoin reject lower costs on October 24 and continue building momentum, it might establish the direction for the short-term trend.
If a company ends the day trading above its significant resistance level, it opens up the possibility for another attempt at reaching $72,000 and setting new record highs.
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2024-10-26 16:11