Bitcoin (BTC) opened the day trading above $100,000 (USD), after recovering this level yesterday. This scenario comes as demand for exchange-traded funds (ETFs) remains strong.
Bitcoin ETFs in the United States, where the largest stock market operates, yesterday they recorded their tenth consecutive day of capital inflows. They have accumulated more than USD 4.3 billion in this entire streak.
However, it should be noted that the level of entries per day has decreased compared to those seen last week. These amounted to USD 766 million on December 5 when the price of bitcoin reached a new all-time high of USD 103,600. On the other hand, the income yesterday in the ETFs was USD 223 million.
This has contributed to the rise will slow down of bitcoin at new all-time high pricesgiven that these instruments impact the price. Although, the fact that entries are still latent helps the price to have recovered after a decline below USD 100,000.
The ETFs of spot bitcoin, as they are in this case, they buy BTC according to the capital inflows they accumulate. Therefore, they put upward pressure on the price of bitcoin when this occurs. Likewise, they work as a downward pressure when they sell holdings due to outflows of money.
Below you can see the capital flow that bitcoin ETFs have had in the United States since their launch:
In green you see the capital inflows and in red the outflows in the United States bitcoin ETFs. Fountain: Sosovalue.
Bitcoin ETF Investors Are Bullish
Even though the number of inflows has decreased, the fact that they are maintained demonstrates the bullish sentiment of the market. In other words, it reflects that the investors traditional and institutional, which are the ones that ETFs usually trade, are considering current bitcoin prices as a buying opportunity.
Such a panorama indicates that, despite the arrival of bitcoin at six-figure prices, as seen below, its current bullish cycle is not yet over. This coincides with bullish projections about its price for next year.
According to asset manager Bitwise, which issues one of the leading bitcoin ETFs, the price will reach in 2025 the USD 200,000as CriptoNoticias reported this morning. In part, he attributes this to possible purchases by corporations and governments, combined with the reduction in supply with the halving that occurs in 2024.
Furthermore, the manager predicts that bitcoin ETFs will capture more capital flows in 2025 than in 2024. At the moment, these instruments, which were launched at the beginning of the year, have accumulated more than USD 113 million so far in 2024. which represents 500,000 BTC.
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
