As a researcher with extensive experience in the cryptocurrency market, I find today’s Bitcoin price surge intriguing. The robust inflows into US spot Bitcoin ETFs have been the primary driver of this rally, with an unprecedented $886.6 million influx recorded yesterday alone. This trend has been ongoing for 16 consecutive days, demonstrating significant investor enthusiasm and momentum.
I’ve seen a notable 2.9% increase in Bitcoin‘s price within the last 24 hours on Binance, peaking at an impressive $71,166. This is the highest value since May 21st. The main driver of this surge seems to be the continuous influx of funds into US Bitcoin spot Exchange-Traded Funds (ETFs). For sixteen days straight, the sector has registered net deposits.
Why Is The Bitcoin Price Up Today?
Yesterday, a massive inflow of $886.6 million poured into these ETFs, with Fidelity taking the lead at $378.7 million, marking a new record for their fund. BlackRock followed closely behind with an impressive $274.4 million in investments. Ark added $138.7 million, Bitwise contributed $61 million, and both the Grayscale Bitcoin Trust and VanEck Bitcoin Trust received $28.2 million and $4 million respectively.
Good morning fellow hodlers,
Yesterday saw an extraordinary influx of funds to the tune of approximately $886.6 million, which is roughly equivalent to 12,500 Bitcoin.
As an analyst, I would rephrase that as follows: The total assets under management by Fidelity were $378.7 million, Blackrock managed $274.4 million, and Ark handled $138.7 million, while Bitwise reported managing $61 million.
Even $GBTC had inflows worth of $28.2…
— WhalePanda (@WhalePanda) June 5, 2024
BlackRock’s iShares Bitcoin ETF has shown continuing appeal, reaching an asset value of over $20 billion – a record-breaking feat achieved faster than any other ETF. This impressive growth underscores the growing interest and excitement among investors in the digital currency sector.
As a crypto investor following the market closely, I can’t help but notice the significant inflows into various cryptocurrency investments lately. Eric Balchunas, a Bloomberg ETF analyst, highlighted this trend, sharing, “Fidelity is making bold moves today with nearly $1 billion in total inflows for The Ten. This is our second-best day since mid-March, and the past four weeks have seen an impressive $3.3 billion in net investments. With YTD investments reaching $15 billion (which was our initial 12-month estimate), it’s becoming clear that the ‘third wave’ of crypto adoption is rapidly turning into a massive tidal wave.”
Although Byzantine General (@ByzGeneral), a well-known cryptocurrency analyst, acknowledged the strong upward trend in prices, he noted that this rise could have been even more significant. He attributed the modest increase to a large amount of passive supply currently available on spot exchanges, which may have dampened the price growth.
Yesterday, I observed a significant increase in trading volume, yet the perceived basis for perpetual contracts showed a slight decrease. I believe we experienced considerable ETF inflows yesterday, but dealing with substantial passive supply on spot exchanges proved to be a challenge.
Additionally, it’s worth mentioning that the rise in price for Bitcoin was not primarily due to the unwinding of short positions in the BTC futures market. In fact, there were only about $27.58 million in short positions liquidated over the past 24 hours, as indicated by data from Coinglass.
Renowned on-chain analyst Willy Woo issued a caution: if Bitcoin surges further and hits $72k, it could ignite a major short squeeze. Woo explained via X, “Reaching $72k serves as the match that could spark a wave of liquidations, totaling approximately $1.5 billion. These short positions extend all the way up to $75k and a new record high.”
At press time, BTC traded at $71,075.
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2024-06-05 10:34