U.S ETFs Breach 1M BTC Held, What It Means For Shiba Inu Price

by

As a seasoned researcher with over two decades of experience in financial markets, I find myself intrigued by the current state of the crypto market, particularly the recent milestone reached by U.S. spot Bitcoin ETFs holding over 1 million BTC. This development, while not directly affecting Shiba Inu (SHIB) as a meme coin, is undeniably significant due to its implications for institutional interest in cryptocurrencies.

The surge past a million Bitcoins held by U.S. Bitcoin ETFs continues to influence the price trend of Shiba Inu. This significant milestone underscores increasing institutional investment in Bitcoin, which may have far-reaching effects on the overall crypto market, such as Shiba Inu. It leaves us pondering how coins like SHIB might respond to this growing institutional interest.

U.S ETFs Breach 1M BTC As Shiba Inu Price Slides 3%

As a researcher examining cryptocurrency trends, I’ve noticed that the SHIB token has dipped by approximately 3% over the past 24 hours, setting its current price at around $0.00001855. This downward trend appears to be related to Bitcoin’s own price drop, which hit a low of $71,430 yesterday. Interestingly, despite this setback, Bitcoin has bounced back and is now trading at $72,219.

The event transpired as the combined Bitcoin held by U.S. Bitcoin Spot Exchange-Traded Funds (ETFs) exceeded 1 million units. Based on information from Soso Value, the total net asset value (NAV) for these ETFs is $72.46 billion, which, given the current Bitcoin price, indicates they own approximately 1,003,337.07 Bitcoins. This amount represents around 5.21% of all Bitcoins in circulation.

As a crypto investor, I recently observed an impressive spike in Bitcoin’s value, which I attribute to the introduction of BlackRock’s iShares Bitcoin ETF (IBIT). This ETF reported an unprecedented daily investment influx of approximately $875 million, making it a significant factor in this surge.

It’s fittingly timely that the largest single-day influx on record for IBIT contributed to U.S. spot ETFs surpassing the milestone of holding over 1 million Bitcoins.

— Eric Balchunas (@EricBalchunas) October 31, 2024

Currently, American investors rank as the second-biggest holders of Bitcoin, with a total of approximately 1.1 million coins, just below the anonymously known founder, Satoshi Nakamoto who is estimated to have about 1.1 million Bitcoins.

Impact of U.S ETFs Inflow on SHIB Price

Investment into U.S. Bitcoin ETFs has a substantial impact on Shiba Inu’s price and the broader crypto market, as it shows that conventional investors are now venturing into the world of cryptocurrencies.

Investors can experience reduced risk associated with crypto market volatility when they invest in ETFs (Exchange Traded Funds) related to cryptocurrencies. Although their investment is indirect, it still impacts the market significantly. For example, U.S. Bitcoin ETFs attracted inflows worth over $5.6 billion during the past four weeks, which happened concurrently with a surge in Bitcoin’s price. This trend positively influenced the Shiba Inu price, causing it to increase by 20% within the same timeframe.

Furthermore, should a Shiba Inu ETF receive approval, it’s likely that investors who are already involved with cryptocurrency through Bitcoin and Ethereum ETFs might quickly show interest, potentially causing a significant shift in the meme coin’s value due to increased buying activity.

SHIB Price Analysis: 58% Breakout Imminent

The current Shiba Inu price projection indicates that the asset has been in a period of stability, moving between specific price points, with recent positive trends drawing it nearer to upper boundary levels. An upside-down head and shoulders formation can be observed, which is often a sign of a bullish reversal. If this pattern verifies through a surge above the resistance level (neckline), it could suggest a possible change in trend direction.

In the past few months, numerous rejections at the $0.000020 mark indicate that it has been a strong level of resistance historically. If we manage to exceed this level, there could be a possibility of a 58% upward surge, potentially taking us up to $0.000031.

From my perspective as a crypto investor, if the bears manage to drive the price down, I believe we’ll find solid support around $0.000017. If this level can’t be held, it might call into question the overall bullish setup. In case of a significant breakdown, $0.0000155 could potentially serve as a secondary line of defense offering some support.

Read More

2024-10-31 08:58