US Spot Bitcoin ETFs Record Net Inflows, Has Bitcoin Price Really Bottomed?

by

As a researcher with extensive experience in the crypto market, I’m cautiously optimistic about the recent net inflows into spot Bitcoin ETFs and the price recovery of Bitcoin. While the inflows have turned positive, they are relatively small compared to the outflows witnessed earlier this week. Moreover, BlackRock’s institutional clients showed no interest in investing, which is a cause for concern.

As an analyst, I’ve noticed a significant shift in the trend for spot Bitcoin ETFs after seven consecutive days of substantial outflows. On Tuesday, June 25, these ETFs recorded net inflows amounting to $31 million. Although Grayscale GBTC experienced net outflows, Fidelity FBTC was able to counterbalance this with impressive inflows totaling $48.8 million. The Bitcoin price has responded favorably to this news, surpassing the $62,000 mark.

US Spot Bitcoin ETF Inflows – A Dead Cat Bounce?

As an analyst, I’ve observed that despite a recent shift to positive net inflows, the size of these inflows pales in comparison to the significant outflows from Bitcoin ETFs over the past week. Furthermore, BlackRock’s Institutional Bitcoin Trust (IBIT) failed to attract any new investments on Tuesday, hinting at decreased institutional demand.

One noteworthy improvement is that Bitcoin ETFs experienced substantial trading activity the previous day. Each ETF provider reported a rise of around 4-5% in their volumes. Notably, BlackRock’s IBIT saw its trading volumes exceed $1 billion, while Fidelity’s FBTC, Grayscale’s GBTC, and Proshares BITO recorded over $300 million each in trading activity.

JUST IN: BlackRock’s spot #Bitcoin ETF did $1.1 billion in trading volume today

— Bitcoin Magazine (@BitcoinMagazine) June 25, 2024

Following robust interest in Bitcoin ETFs during the first quarter, investment inflows have since decelerated as investors keep abreast of significant economic indicators. The Federal Reserve has signaled its plan to maintain elevated interest rates for a prolonged duration due to a thriving labor market. Consequently, market participants have scaled back their predictions, anticipating merely one rate reduction by the close of 2024.

BTC ETFs See Healthy Demand In Hong Kong and Australia

Despite the US market dominating attention for Bitcoin exchange-traded funds (ETFs), those in Hong Kong have experienced significant inflows. Adopting a “buy the dip” approach, these BTC ETFs in Hong Kong demonstrate institutional confidence amidst the current Bitcoin price downturn in the market.

Just like the Australian monochrome Bitcoin ETF, consistent in its approach, has been gradually purchasing Bitcoins in minimal amounts throughout each phase of the ongoing Bitcoin price decline.

Australia’s Monochrome Bitcoin ETF, $IBTC w/ 59 $BTC
— HODL15Capital (@HODL15Capital) June 25, 2024

Has Bitcoin Price Bottomed Out?

From my perspective as a market analyst, after reaching a low of $58,000 on Monday, Bitcoin’s price has bounced back and currently hovers around $61,700 at the time of this analysis. As long as the Bitcoin price maintains its position above the crucial support level of $60,000, there is no significant cause for concern regarding further corrections, unless unforeseen market instability arises.

Yesterday, Bitcoin (BTC) experienced a significant drop in value, reaching a low of approximately $58,000. This price point came close to breaching the renowned daily 200-moving average, which, if broken, historically signaled the beginning of an uptrend and the start of a bull market.
At this crucial stage, keep a close eye as a break here could signal the end of the bull market or the beginning of a prolonged accumulation period.
But I don’t expect it to breakdown as there is huge panic…
— Crypto Vikings (@CryptoVikings07) June 25, 2024

Read More

2024-06-26 07:33