This week, liquidity pouring into spot Bitcoin exchange-traded funds (ETFs) exceeded $1 billion for the first time since July, with total inflows reaching $1.11 billion. Analysts are forecasting a new all-time high for Bitcoin within the next three months, driven by growing investor enthusiasm.
Record Inflows into Bitcoin ETFs
According to data from SoSoValue, cumulative net inflows across the 12 available spot Bitcoin ETFs have now hit $18.8 billion, marking an all-time high. Notably, the bulk of this week’s inflows—$494.27 million—occurred on September 27, primarily driven by ARK 21Shares’ ETF (ARKB).
Here are the key inflow figures for notable ETFs:
- ARK 21Shares (ARKB): $203.07 million
- Fidelity (FBTC): $123.61 million
- BlackRock (IBIT): $110.82 million (continuing its five-day inflow streak)
- Grayscale (GBTC): $26.15 million (first inflow since September 16)
- Bitwise (BITB): $12.91 million
- VanEck (HODL): $11.17 million
- Invesco (BTCO): $3.28 million
- Valkyrie (BRRR): $3.26 million
Other funds, including Franklin Templeton’s EZBC, WisdomTree’s BTCW, and Grayscale Bitcoin Mini Trust, did not see any inflows.
Market Dynamics Favoring Bitcoin
The recent surge in inflows coincided with Bitcoin’s breakthrough past the critical resistance level of $65,000. Analysts believe this could trigger a wave of FOMO (fear of missing out) buying, paving the way for a potential rally toward new all-time highs.
Markus Thielen from 10X Research emphasized that Bitcoin’s recent breakout is a significant catalyst for a possible rally in Q4. He anticipates this movement could push Bitcoin toward the $70,000 mark, setting the stage for new highs sooner than many expect.
Thielen cited several factors contributing to this bullish sentiment:
A sharp increase in stablecoin minting, with nearly $10 billion issued following the Fed’s July meeting, has flooded the crypto market with liquidity.
Approximately 55% of newly mined Bitcoins originate from mining pools in China. Following the Fed’s rate cut, China’s monetary and fiscal stimulus measures could result in substantial capital outflows into cryptocurrencies.
With these forces at play, Thielen believes the likelihood of a major surge this quarter is high, indicating that gains may be front-loaded.
Investor Sentiment and Future Projections
Echoing Thielen’s optimistic outlook, Matt Mena from 21Shares highlighted that Bitcoin’s ascension past $65,000 is already generating heightened interest from investors. He noted that lower-than-expected inflation data and the recent rate cut have fostered a favorable environment for risk assets, allowing Bitcoin to thrive.
Mena anticipates Bitcoin may retest the $68,000 to $70,000 range, viewing this as an ideal moment for retail investors to enhance their exposure to risk assets, especially given Bitcoin’s historical performance during halving years.
On X, a trader speculated that Bitcoin could reach $124,000 by the end of 2024, referencing historical data showing an average Q4 return of approximately 88.84% following a positive September.
Market Indicators
The Bitcoin Fear and Greed Index has surged to 64, rebounding sharply from an August low of 17, indicating robust market optimism. Currently, Bitcoin is trading at $65,757, reflecting an increase of over 4% for the week and 11.18% for the month—its best performance since March 2024. The flagship cryptocurrency is now only 10.8% shy of its all-time high recorded in March 2024.
As Bitcoin continues to gain momentum, the crypto community watches closely to see if it can maintain this upward trend and achieve new price milestones in the near future.
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