Bitcoin ETF Show Positive Inflows Amid Market Uncertainty

Bitcoin ETF Inflows Surge Amid Market Uncertainty

Bitcoin ETF– A multi-day streak of inflows into spot Bitcoin exchange-traded funds (ETFs) may provide crucial support for BTC prices, despite a decline in spot buyer demand, according to analysts from Bitfinex.

Sustained ETF Inflows Could Support BTC Prices

In a report dated September 23, Bitfinex analysts stated, Sustained ETF inflows could buoy the BTC price, highlighting this as a significant counter-argument to their expectation of short-term price consolidation. They noted that the decrease in Bitcoin purchases on crypto exchanges indicates a slowing of spot market activity. With Bitcoin spot market buying slowing, evidenced by spot Cumulative Volume Delta flattening when the price reached $63,500, we foresee BTC moving in a range in the near term, they elaborated.

Spot Bitcoin ETFs Mark Positive Trend

On September 24, spot Bitcoin ETFs experienced total cumulative inflows of $136 million, marking a four-day streak of positive inflows, as reported by Farside. This influx occurs during a month typically seen as bearish for Bitcoin traders. Historical data from CoinGlass reveals that September is often the worst month for Bitcoin, with an average monthly loss of 4.49% over the past eleven years.

At the time of this report, Bitcoin’s price had risen approximately 6.26% since September 18, trading at $63,713, according to TradingView data. However, Bitcoin’s dominance—its share of the total crypto market cap—has decreased by 1.35% during the same period, now standing at 57.62%.

Future Outlook for Bitcoin Prices

Bitfinex analysts suggest that if ETF inflows remain positive, Bitcoin could experience further upside, especially if traditional finance markets like the S&P 500 continue to rally. However, they caution that without an increase in spot buyer demand, the most likely scenario is that Bitcoin’s price will consolidate or face a partial correction due to a lack of sustained buying pressure.

Looking ahead, industry consensus indicates that the upcoming U.S. presidential election in November could play a critical role in Bitcoin’s price trajectory. Nonetheless, some industry leaders, including Geoff Kendrick from Standard Chartered, predict that Bitcoin may reach six figures within the next twelve months, regardless of the election outcome. Kendrick believes Bitcoin could hit $200,000 by the end of 2025, regardless of who wins the 2024 U.S. presidential election.

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