The surge in liquidity inflows for Bitcoin ETFs is rising alongside a hotting up cryptocurrency market. Analysts expect Bitcoin to reach a new all-time high before the end of the current month as weekly inflows into spot Bitcoin exchange-traded funds (ETFs) exceeded $1 billion, reflecting newly invigorated investor interest.
According to data provided by data from SoSoValue, weekly inflows into Bitcoin ETFs surpassed $1.11 billion for the first time since July. The total cumulative net inflows for the 12 active Bitcoin ETF offerings now reach $18.8 billion, achieving a new all-time high. The biggest inflows were recorded on September 27, totaling $494.27 million, and ARK 21Shares’ ARKB ETF took the lead.
Breakdown of ETF Inflows
- ARK 21Shares ARKB: $203.07 million
- Fidelity FBTC: $123.61 million
- BlackRock IBIT: $110.82 million (representing its fifth consecutive day of inflows)
- Grayscale GBTC: The company has had its first $26.15 million influx since mid-September.
- Bitwise BITB: Continuing a run of positive inflows over four days, the total is a staggering $12.91 million.
- VanEck HODL: $11.17 million
- Invesco BTCO: $3.28 million
- Valkyrie BRRR: $3.26 million
Some ETFs, which include Franklin Templeton’s EZBC, WisdomTree’s BTCW, Grayscale Bitcoin Mini Trust, and Hashdex’s DEFI, reported no inflows throughout this era.
Analysts Predict a Bullish Q4
The influx of money coincides with Bitcoin’s breach of important resistance levels, as many experts anticipate this could lead to a rally inspired by a fear of missing out (FOMO). Bitcoin’s recent breakthrough past $65,000 has generated hope among traders and analysts.
Markus Thielen, the head of research at 10x Research, thinks this outburst could trigger a strong rally in the fourth quarter. According to his latest analysis, Bitcoin’s $65,000 resistance breakthrough signaled an important indication of possible upward momentum. He expects FOMO to help Bitcoin climb to $70,000, possibly readying the groundwork for new all-time highs in the next few months.
Thielen pointed out several causes for the bullish sentiment, such as a rise in stablecoin issuance of around $10 billion since the Federal Reserve met in July, adding liquidity to the cryptocurrency market. He pointed out the contributions of China’s mining pools, which now produce 55% of all new Bitcoins, and how China’s monetary and fiscal stimulus efforts might lead to capital shifting into cryptocurrencies.
Thielen said, “The chances of a Q4 rally are exceedingly high, and gains are likely to come first.” “A large increase could be brewing, stimulating even greater FOMO throughout the crypto environment.”
Matt Mena, a researcher at 21Shares in the crypto field, has likewise said that the breakthrough of the $65,000 level has already attracted substantial investor interest. According to Mena, this is due to lower-than-projected inflation data alongside the Federal Reserve’s latest rate cut, which has produced a conducive atmosphere for risk assets, including Bitcoin.
“With the Fed’s more favorable stance and liquidity injections around the world, Bitcoin is likely to revisit the $68,000 to $70,000 level,” said Mena. “This might be an ideal opportunity for retail investors to increase their involvement in crypto, especially amid Bitcoin’s historical inclination to rally at this period.”
Bitcoin’s Bullish Momentum Builds
The surge in optimism is reflected in the Bitcoin Fear and Greed Index, which jumped to 64, up sharply from its August low of 17, indicating growing market confidence. At the time of writing, Bitcoin was trading at $65,757, up more than 4% for the week and 11.18% for the month—its strongest performance since March.
Some traders forecast even higher prices, with Bitcoin now just 10.8% below its all-time high. On social media platform X (formerly Twitter), one trader predicted that Bitcoin could reach $124,000 by the end of 2024, based on historical data showing an average fourth-quarter return of 88.84% following a positive September.
Historically, when #Bitcoin has had a positive September, it has often set the stage for a strong Q4.
History shows an average Q4 return for $BTC at +88.84%, which from todays prices would mean that Bitcoin could end the year at $124,000
History shows that when September is… pic.twitter.com/yCBjvcUrLN
— StockTrader_Max (@StockTrader_Max) September 28, 2024
