As a seasoned crypto investor with a decade of experience under my belt, I’ve seen bull runs and bear markets come and go. This week’s inflows into Bitcoin ETFs have given me a renewed sense of optimism, especially after the previous week’s outflows left a sour taste in my mouth. The positive sentiment is palpable, with institutional players like Fidelity and ArkInvest leading the charge.
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, there was more than $400 million invested in Bitcoin ETFs, marking an end to the preceding trend of outflows. This purchase equated to approximately 6,892 Bitcoins and resulted in the creation of around 2,250 new coins during this period. This surge suggests a significant rise in interest for the crypto market’s top player as investors anticipate favorable large-scale economic events.
NEW: Spot #Bitcoin ETFs bought 6,892 #BTC this week, while miners only produced 2,250 BTC
— Bitcoin Magazine (@BitcoinMagazine) September 14, 2024
At the beginning of last week, Bitcoin ETFs saw a net inflow of approximately $28.6 million, with this figure rising to $117 million the next day and continuing to show positive results. On September 13th, these products recorded an inflow of $263.2 million, the highest since July 22nd. This change in fortune for the leading asset has caused a surge throughout the industry, resulting in an increase in market capitalization.
In September, Fidelity’s Bitcoin ETF (FBTC) attracted $102 million in investments, making it the top performer among Bitcoin ETFs. Simultaneously, ArkInvest also experienced positive inflows. Conversely, BlackRock’s IBIT did not record any total inflows following a week in the negative zone. After these funds turned profitable after two consecutive weeks of net outflows, Matt Hougan, Bitwise CIO, endorsed them, attributing their success to increasing institutional adoption amid recent discussions of decreased optimism.
Institutional Adoption Behind Price Recovery
In 2024, Bitcoin Exchange-Traded Funds (ETFs) propelled the cryptocurrency market to unprecedented heights as conventional investors flooded the sector with their investments. Consequently, the overall market experienced growth, causing numerous assets to reach record highs thanks to Bitcoin’s upward trend. Bitcoin reached an astounding price of over $73,000 during the first quarter of 2024, but it has since faced notable declines dipping below the $60,000 threshold.
Last week’s outflows caused the asset’s price to dip below $55,000, affecting the broader market negatively. But a fresh wave of institutional demand pushed the price back up to $60k, only to fall short of the resistance again. Currently, Bitcoin is trading at $59,819, showing a minor decrease over the past 24 hours. Renowned analyst Van de Poppe predicts that Bitcoin’s price might surge beyond the $60k threshold as per his analysis on Twitter.
One significant reason behind the upward trend in this asset is the decrease in U.S. inflation and the anticipated reduction in interest rates by monetary policy. This situation could lead investors to pour more funds into riskier assets, with cryptocurrency being a significant recipient of these inflows. Moreover, MicroStrategy’s recent acquisition of 18,300 Bitcoins for around $1.1 billion indicates increased institutional interest in the asset.
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2024-09-15 02:32