Bitcoin ETFs- Institutional FOMO Drives Bitcoin ETF Activity to New Heights
Bitcoin ETFs– Bitcoin exchange-traded funds (ETFs) witnessed a remarkable $870 million in inflows yesterday as the cryptocurrency approached a new all-time high. This surge reflects growing institutional interest in Bitcoin, particularly as its price hovered just $175 shy of the previous record of $73,737.94 set on March 14.
BlackRock’s iShares Bitcoin Trust Sees Record Trading Volume
BlackRock’s iShares Bitcoin Trust (IBIT) recorded an impressive trading volume of $3.36 billion yesterday, marking the highest level in six months. As of now, the IBIT fund manages approximately $17.2 billion worth of Bitcoin, according to Coinglass. However, Bloomberg Intelligence analyst Eric Balchunas pointed out that such spikes in ETF volume are typically associated with downturns or crises rather than price increases. He suggested that the recent uptick may be driven by institutional FOMO—fear of missing out.
Market Focus Shifts to Upcoming Economic Indicators
Currently, Bitcoin is trading at around $71,740, reflecting a 0.8% increase for the day and an 8.1% rise over the week, based on CoinGecko data. Traders are now keenly awaiting the upcoming U.S. nonfarm payroll (NFP) report scheduled for release on Friday. According to QCP Capital, this report is a vital economic indicator that could significantly influence the Federal Reserve’s decision on interest rates. The consensus estimates for the NFP report suggest a figure of approximately 110,000, which is about half of the previous report.
Accelerating Momentum and Favorable Catalysts
In addition to the NFP report, investors are also looking for insights from today’s gross domestic product (GDP) report from the Bureau of Economic Analysis. The report is expected to indicate a 2.8% increase in U.S. GDP for the third quarter, a slight decline from the 3% reported in Q2.
BRN analyst Valentin Fournier noted that Bitcoin appears to have entered an acceleration phase, aligning with the upcoming presidential election and other favorable catalysts. While strong resistance may pose a challenge, the current momentum and positive factors could pave the way for a breakout above its all-time high. Fournier recommends maintaining a strong investment position, favoring Bitcoin over Ethereum.
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