US Bitcoin ETF Records $978M Influx Sparking Optimism, BTC Rally To Sustain?

by

For two days in a row, the U.S. Bitcoin ETF has seen an increase in investments, bringing hope to investors. Moreover, this surge occurs during a strong Bitcoin rally, where the primary cryptocurrency surpassed $100K. Therefore, these steady influxes may suggest growing institutional interest, potentially driving Bitcoin’s price even higher.

US Spot Bitcoin ETF Records Strong Inflow 

On January 6th, 2024, US Spot Bitcoin experienced a significant influx of approximately $978.6 million, making it the second day in a row with inflows. The most recent inflow, based on Farside Investors’ data, was around $908.1 million. These two inflows add to the record of over $36.89 billion in historical positive inflows for Bitcoin.

On Monday, Fidelity’s FBTC took the lead with a significant investment of $370.2 million, while BlackRock’s IBIT wasn’t far behind with an inflow of $209.1 million. Every other Bitcoin ETF saw positive investments, except for Invesco, Valkyrie, and WTree, which experienced minimal fund flows. However, the overall pattern in the Bitcoin ETF market suggests that institutions are growing increasingly confident in Bitcoin as a leading cryptocurrency.

From my perspective as a crypto investor, it’s interesting to note that businesses such as Michael Saylor’s MicroStrategy, Metaplanet, and others are increasingly showing interest in Bitcoin (BTC). In fact, MicroStrategy recently made a significant move by purchasing 1,070 BTC at around $101 million. This demonstrates their confidence in the potential of BTC as an investment, which is encouraging for those of us who are bullish on its future.

Simultaneously, Vivek Ramaswamy’s investment firm, Strive Asset Management, demonstrated keen enthusiasm towards the leading cryptocurrency. In fact, they have planned to introduce a Bitcoin Bond Exchange-Traded Fund (ETF), designed to invest in bonds that are issued by companies for the acquisition of Bitcoin.

Can BTC Hold Its Momentum?

Today’s Bitcoin price experienced a 2.76% rise, peaking at approximately $101,462.39. Over the past week, it has surged by nearly 9%. Simultaneously, the overall market capitalization increased by 2.60%, reaching an impressive $2 trillion. Moreover, the 24-hour trading volume demonstrates a significant surge, currently standing at around $48.18 billion.

A key factor driving the bullish trend is Donald Trump’s increasing likelihood of becoming the U.S. President, which stokes speculation about the potential creation of a U.S. Bitcoin Strategic Reserve. Furthermore, other nations such as Hong Kong and Germany are also considering this move.

Enhancing the anticipation, renowned analyst Michael van de Poppe suggests a potential new all-time high (ATH) if Bitcoin maintains its value around $98,000. Although he didn’t specify an exact figure in his recent post, van de Poppe hints that the price could potentially rise to $104,087. The positive buzz surrounding Bitcoin, such as the influx of Bitcoin ETF approvals and other market indicators, has been stoking optimism among investors.

Maintaining a positive outlook is also bolstered by consistent backing from the entity known as Whale. According to a report published by Lookonchain on X, it was noted that within this period, three fresh wallets withdrew a total of 2,173 Bitcoin, equating to approximately $221.6 million in value at the time.

A different perspective on Bitcoin’s price surge reveals bearish undercurrents. An examination of Bitcoin’s price movements suggests that sharp increases in Open Interest can lead to a correction for either buyers or sellers when they occur swiftly. This pattern seems to be playing out now, causing a note of warning for all Bitcoin investors. While the excitement about a potential Bitcoin rally remains strong, it is crucial to exercise caution given the volatile nature of the cryptocurrency market.

Read More

2025-01-07 14:16