Institutional FOMO Drives Bitcoin ETF Surge: Could a Local High Be Imminent?

Bitcoin Faces Potential Correction as ETF Inflows Near Record $900M Mark: Could Institutional FOMO be Returning?

As institutions flood the US market for Bitcoin ETFs, Bitcoin must avoid a local high. On October 30, well-known expert Mark Cullen warned about possible ETF FOMO in a thread on X.

Every day, institutional investors generate net inflows of hundreds of millions of dollars into US spot Bitcoin ETFs. The total for October 30 alone is close to $900 million, the second-largest amount ever, according to the most recent statistics from sources, including the UK-based investment firm Farside Investors. However, for those who have been in the market for a long time, their success feels like the biggest problem. ETFs experienced comparable success during Bitcoin’s March surge to all-time highs, but institutional fervor eventually led to a multimonth correction of the BTC price.

The last couple of times the Bitcoin ETF flows were ~$900m+ and Price was > 70k, it signaled a local top. Just something to think about. With another huge inflow day for the Bitcoin ETF’s but little to now progress in price, lets hope the ETF FOMO isn’t going to mark a local top again this close to a new ATH,

Cullen

Lower ETF Influence on Bitcoin Prices as OTC Supply Hits Yearly High

More Bitcoin is available on so-called over-the-counter (OTC) exchanges to act as a venue for ETF purchases than there was earlier in the year. This on-chain analytics technology allows for large purchases that don’t impact the current price, according to CryptoQuant.

Higher Bitcoin availability on OTC desks makes daily purchases from ETFs add up to a lower share of inventory. Currently, total daily Bitcoin purchases from ETFs represent between 1% and 2% of the total Bitcoin balance on OTC desks. This contrasts with a share of 9%–12% of total OTC balances in Q1 2024.

CryptoQuant

According to CryptoQuant, the current situation would need to be altered significantly if demand for ETFs were to increase significantly.

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