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.
FAQs
What are Bitcoin ETFs?
Bitcoin ETFs (Exchange-Traded Funds) are investment funds that track the price of Bitcoin and allow investors to buy shares of the fund on traditional stock exchanges, providing exposure to Bitcoin without directly owning it.
Why are ETF inflows important for Bitcoin’s price?
ETF inflows indicate increased investor interest and demand for Bitcoin. Sustained inflows can help support or buoy Bitcoin prices even if spot market buying decreases.
Leave a comment