Bitcoin Price Recovers as Spot ETFs Attract $556 Million in Inflows
Bitcoin spot ETFs experienced substantial inflows of over $556 million, with Fidelity’s ETF leading at $239 million. Bitcoin’s price surged to $65,780, while Ethereum rose to $2,620. The derivatives market shows record open interest of $19.8 billion, enhancing bullish sentiment among traders. Analysts anticipate targets of up to $70,000 for Bitcoin if current resistance levels hold, supported by favorable liquidity conditions from central banks.
On Monday, Bitcoin spot exchange-traded funds (ETFs) experienced a remarkable inflow of over $556 million, marking the largest infusion since early June. Leading the way was Fidelity’s ETF (FBTC), which attracted $239 million, while Bitwise’s ETF (BITB) contributed an additional $100 million. The Ethereum spot ETFs also saw an inflow of $17 million, indicative of the rising institutional interest in cryptocurrency, as reported by SoSo Value. Notably, of the twelve funds surveyed, while WisdomTree and Hashdex’s Bitcoin ETFs did not register any inflows, it is worth mentioning that no ETFs faced outflows either. As of Tuesday morning in Europe, Bitcoin’s price stood at $65,780, reflecting a 2.5% rise for the day, having previously peaked at $66,486. Ethereum similarly showed positive movement, trading at $2,620, an increase of 3.5%, according to CoinGecko data. During the past 24 hours, the cryptocurrency market underwent liquidations totaling $183 million, predominantly from short positions, with CoinGlass revealing that $136 million of these were from shorts and $47 million from long positions. A contributor from CryptoQuant, EgyHash, highlighted that Bitcoin’s open interest in the derivatives market has surged to a record high of $19.8 billion. This growth in open interest signifies increased liquidity and heightened interest in the cryptocurrency space. Moreover, funding rates have reached their highest positive levels since August, suggesting that the majority of this open interest is concentrated in long positions, pointing towards an optimistic market sentiment among traders. Market analysts are closely monitoring Bitcoin’s price fluctuations as it approaches critical resistance levels, with expectations of further upward movement if specific conditions materialize. In a correspondence to Decrypt, 10x Research noted that indicators suggest Bitcoin is engaging in bullish activities. The open interest in Bitcoin options currently stands at $18.3 billion, lower than the $21 to $22 billion levels observed during the previous attempts to overcome its downtrend, suggesting potential for a future price increase, especially as call buying becomes more prevalent. The firm further elucidated, “With Bitcoin recently breaking through the $65,000 resistance level, we could see aggressive traders selling puts to buy calls, positioning for a potential move higher.” They emphasized that current trading strategies include selling $60,000 puts while purchasing $75,000 calls, which are executed with virtually no premium, thereby establishing upside potential for the maturity date of November 29, 2024. Should Bitcoin maintain its position above its seven-month downtrend resistance, analysts forecast that the next target could be $70,000, with the possibility of reaching new all-time highs as the U.S. Presidential election draws near. The dovish policy stance adopted by the Federal Reserve last month, along with interest rate reductions from other central banks, including the European Central Bank and some in Asia, is anticipated to furnish a supportive liquidity environment that may bolster Bitcoin’s price in the forthcoming weeks. According to the 10x Research analysts, “The following 48 hours will be crucial in solidifying Bitcoin’s breakout above its resistance. If successful, the next price target of $70,000 seems within reach.”
The recent activity in Bitcoin spot ETFs reflects a growing interest in the cryptocurrency market, particularly among institutional investors. Spot ETFs allow investors to gain exposure to Bitcoin without having to directly purchase the cryptocurrency, which can be seen as a less risky investment option. The significant inflows into these funds indicate increasing confidence in Bitcoin as an asset, suggesting a potential upward trend in its price. The rise in open interest in the derivatives market further suggests that traders are becoming increasingly optimistic about future price movements, particularly as Bitcoin approaches critical price resistance levels.
The influx of over $556 million into Bitcoin spot ETFs signifies a strong institutional interest in the cryptocurrency, reflecting a bullish market sentiment. Bitcoin’s recent price movements, along with a record high in derivatives open interest, showcase potential for further price increases. Analysts suggest that maintaining above critical resistance levels could lead to targets as high as $70,000 in the near future, especially given the supportive liquidity conditions introduced by central banks. Overall, current trends indicate an optimistic outlook for Bitcoin as it navigates this transformative phase in the market.
Original Source: decrypt.co
Post Comment