Bitcoin ETF- Bitcoin Consolidates at $96K, Supported by Strong Institutional ETFs Inflows
Bitcoin ETF– Bitcoin (BTC) has maintained a solid position above the $96,000 mark, with little price movement over the past 24 hours, according to data from The Block. After experiencing a significant correction from its record high of over $108,000 in mid-December, Bitcoin is currently in a consolidation phase, analysts say.
Institutional Confidence Boosted by ETF Inflows
Bitcoin exchange-traded funds (ETFs) saw a substantial $475 million in inflows on Thursday, reversing a four-day outflow streak leading up to Christmas. Ethereum ETFs also saw notable inflows, totaling $89 million, according to Farside Investors.
This surge in ETF investment highlights growing institutional confidence in digital assets, despite Bitcoin’s recent failure to surpass the psychological $100,000 mark. Analysts point out that institutional investors are still showing strong support for Bitcoin, driven by positive macroeconomic trends.
The ETF inflows underscore robust institutional support, especially as macroeconomic conditions improve and inflation shows signs of easing, said Valentin Fourner, lead analyst at BRN, in an email to The Block.
The U.S. core Personal Consumption Expenditures (PCE) data released last Friday revealed that inflation is slowing, with a 0.1% monthly increase and a 2.8% year-over-year rise, both slightly below expectations. Fourner emphasized, These figures suggest inflation is trending toward the Federal Reserve’s 2% target, creating a more favorable environment for risk assets like Bitcoin.
Shifting Market Trends: Alternative Crypto Assets Gain Attention
While Bitcoin’s price correction has led some investors to explore alternative crypto assets, the focus has shifted to emerging technologies and narratives within the digital asset space. According to Bitget’s chief analyst Ryan Lee, AI-driven investments and high-performance decentralized finance (DeFi) platforms are gaining momentum as the next big frontier for growth.
One example is HyperLiquid’s HYPE token, which has surged over 15% in the last 24 hours, as per CoinGecko data. Another notable asset is the AI-driven venture capital DAO token ai16z, which increased by 8% during the same period. “Ai16z, merging AI with blockchain technology, is poised for significant growth by 2025. Meanwhile, HyperLiquid, which focuses on high-performance DeFi, could see its value reach between $25 and $40 under favorable market conditions in 2025,” said Lee.
The Role of AI in Emerging Crypto Assets: The Case of Ai16z
Ai16z has gained attention for its integration of AI with blockchain, particularly through its “Eliza” AI, named after one of the earliest chatbots developed in the 1960s. Eliza’s role is to create AI versions of both real and fictional characters, including notable figures like Andreessen Horowitz’s founder Marc Andreessen (known as pmairca) and the famous crypto trader Degen Spartan. The platform’s focus on merging AI with crypto is expected to drive future growth, with ai16z leading the charge into a new era for digital assets.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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