Record-Breaking Day: Spot Bitcoin ETF Trading Exceeds $3 Billion As BTC Eyes Record Peak

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As a seasoned crypto investor with a decade of experience under my belt, I’ve seen enough market fluctuations to know that the recent surge in Bitcoin (BTC) is nothing short of exhilarating. The US spot Bitcoin ETF market has been a game-changer, driving the price action closer to its all-time high. The influx of institutional and retail investors, as evident by the remarkable uptick in ETF purchases over the past two weeks, is a testament to the growing acceptance of Bitcoin as a legitimate investment asset.

With Bitcoin (BTC) moving towards its previous record high of around $73,700 set in March, the revitalized U.S. market for Spot Bitcoin Exchange Traded Funds (ETFs) has been a significant factor fueling the latest increase in Bitcoin’s price.

On Tuesday, the combined trading volume for spot Bitcoin Exchange-Traded Funds exceeded $3 billion, which occurred as Bitcoin’s price momentarily rose above $73,000 – a milestone not seen since more than seven months prior.

Bitcoin ETF Market Set To Surpass 1 Million BTC Holdings Soon

Significantly, it was noted by crypto investor BigRig that there has been a substantial increase in Bitcoin ETF buying activity during the last fortnight. This surge has led to approximately $2.673 billion being invested into these ETFs since October 16.

During this timeframe, this specific portion accounted for approximately 11.8% of all ETF investments, implying a strong appetite among institutional and individual investors. BigRig noted that, before the trading activity on Tuesday, this stretch had been the most profitable day for ETF investment.

According to Eric Balchunas, a Bloomberg ETF analyst, it’s predicted that US spot ETFs could own approximately one million Bitcoins by next Wednesday. This would surpass the Bitcoin holdings of Satoshi Nakamoto, the mysterious inventor of Bitcoin, around mid-December. The average weekly increase is estimated to be around 17,000 Bitcoins.

However, Balchunas also cautioned that market volatility could impact these projections. “Anything can happen,” he noted, referencing the possibility of a sudden selloff that could delay the timeline. 

If prices keep climbing and a possible Trump win in the upcoming election boosts market excitement, an expert predicts that a surge of new investors might speed up Bitcoin’s climb towards fresh record highs.

Whale Accumulation Spurs Optimism

Although there’s been a lot of action in the Bitcoin ETF sector, the value of the leading cryptocurrency hasn’t quite reached its record peak yet. At this moment, it has retreated to around $72,250.

However, there are positive indicators for Bitcoin bulls. The cryptocurrency has been consolidating above key support levels, with strong backing around the $66,000 mark. 

Over the last seven days, this backing has successfully kept any substantial drop at bay and boosted the ongoing surge. But for the bulls to show real confidence, they’d need a steady period of holding above the $70,000 mark, which could underscore the power behind the current trend.

Market analyst Miles Deutscher has been expressing a positive view on Bitcoin, especially towards the end of this year. Notably, he’s highlighted a striking pattern: the large owners (or “whales”) of Bitcoin are amassing the digital currency at an “extraordinary speed.

It seems like institutional investment in Bitcoin is exceeding individual investor interest at the moment, a change which might lead to significant price surges upward in the short term.

German emphasized that the reserves of Bitcoin held on exchanges have hit record lows, implying a significant decrease in the Bitcoin supply readily available for trading. This suggests a tightening in the market’s supply.

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2024-10-30 02:10