Bitcoin Price Movement Slows Despite Spot ETF Inflows Reaching Record Levels

Bitcoin Price Movement Slows: Record ETF Flows Fail to Ignite BTC’s Push Beyond $70,000

Despite the record milestone for spot Bitcoin ETFs last week, the price of Bitcoin has not yet surpassed $70,000. On October 17, ten months after its launch, the total net flows of US-based spot Bitcoin ETFs surpassed $20 billion. It took almost five years for gold ETFs to reach this similar milestone. Cointelegraph data shows that on October 21, Bitcoin reached a nearly three-month high of $69,487 before reversing course to trade at $68,570.

The slow price movement could be caused by the delayed impact of ETF inflows, which Bitfinex analysts say can take several days to affect the market price of Bitcoin. Analysts noted that the order book’s high ask volume indicates that cryptocurrency traders are leveraging ETF flows as exit liquidity for their trades.

Usually, this means that large ETF inflows have a muted impact for a few days and then the market reverses lower once the aggression from spot market buyers fades. We need sustained spot market interest to push price out of the current range-bound price action.

Bitfinex analysts

Why Isn’t Bitcoin’s Price Soaring Despite Major ETF Inflows?

The price of Bitcoin may hit a record high with the aid of positive ETF inflows. Just one month after their inception, on February 15, U.S.-based spot Bitcoin ETFs accounted for over 75% of new investment in the cryptocurrency, which at that point had crossed the $50,000 threshold. According to Bitfinex analysts, Bitcoin ETFs have not had a significant immediate influence on the market, with days frequently elapsing before inflows produce bullish momentum.

Despite the significant inflows into Bitcoin ETFs, particularly into the BlackRock and Fidelity funds, the price impact has been muted on several instances on days when net inflows exceeded $500 million worth of BTC.

Bitfinex analysts

Moreover, the price impact of last week’s ETF inflows may have been lessened since, according to Bitifnex experts, a portion of them may have been a part of a delta-neutral trading strategy.

For more up-to-date crypto news, you can follow Crypto Data Space.