Bitcoin ETF Inflows Soar To Highest Level In Months As BTC Price Surges Past $68,000
May 20 2024 - 7:00PM
NEWSBTC
After enduring a significant 20% price correction earlier this
month that saw Bitcoin fall below $56,400 and increased outflows
from the Bitcoin ETF market, the world’s largest cryptocurrency has
managed to stage a strong comeback. It has broken above the key
$66,000 resistance level and turned it into a new support zone. BTC
Bounces Back As Bitcoin ETF Inflows Soar The resurgence in
Bitcoin’s price has been closely tied to a rekindling of inflows
into the US spot Bitcoin ETF market. Data from Farside shows that
spot Bitcoin ETFs saw their best inflow week in two months, with
the US fund category collectively notching $948 million in positive
net flows from May 13 to May 17. Interestingly, the majority of
these inflows, approximately 89%, occurred in the last three
trading days of the week, which industry analysts and researchers
such as James Butterfill of CoinShares attribute to a shift in
investor sentiment following the release of a lower-than-expected
Consumer Price Index (CPI) report on Wednesday. Butterfill stated:
The inflows were an immediate response to the lower-than-expected
CPI report, highlighting our view that Bitcoin prices have
recoupled to interest rate expectations. Related Reading: Cardano
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Regionally, in terms of the overall Bitcoin market, the
US-dominated inflows with $1,002 million, while Switzerland and
Germany also saw small inflows of $27 million and $4.2 million,
respectively. Notably, the Grayscale Bitcoin Trust, which has
seen outflows of $16.6 billion since the launch of the first
Bitcoin ETF in January, saw small inflows totaling $18 million.
Beyond just spot Bitcoin ETFs, the digital asset investment product
space experienced inflows for the second consecutive week, totaling
$932 million, according to CoinShares. However, trading volumes
remained relatively low at $10.5 billion, compared to the $40
billion seen in March. Bitcoin Poised For Further Gains? The
renewed institutional interest in Bitcoin ETFs and the broader
digital asset space has coincided with a strong price recovery for
the leading cryptocurrency. Bitcoin’s ability to firmly hold the
$66,250 support level, with over 530,000 BTC traded at this price,
has given analysts confidence in the asset’s potential for further
gains. According to crypto analyst Ali Martinez, if the $66,000
support holds, Bitcoin could see strong potential for further gains
in the coming days, demonstrating the bullish sentiment surrounding
the largest cryptocurrency on the market. However, while
Bitcoin has managed to bounce back above the crucial $66,000 level
after the recent pullback, the leading cryptocurrency still faces a
critical test as it attempts to break out of its established
trading range. Related Reading: Crypto Analyst Sounds Warning Alarm
For Potential 50-60% Crash In Chainlink Price, Here’s Why Crypto
analyst Rekt Capital has pointed out that despite Bitcoin recording
a bull flag breakout confirmation, the asset still needs to secure
a daily close above $67,000 to continue its trend of higher highs
and confirm the potential for further upside. The analyst
further explains that Bitcoin has been oscillating between its low
and high range between $60,000 and $70,000 for over two months, a
natural consolidation process. As part of this, Rekt Capital
believes that Bitcoin should be able to revisit the range high of
$71,500 over time. At the time of writing, BTC is trading at
$68,130, up a substantial 9% in the last week alone and over 8% in
the last fourteen days. Featured image from Shutterstock,
chart from TradingView.com
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