Key Points
- Spot Bitcoin ETFs in the U.S. have seen three weeks of consecutive cash inflows, led by BlackRock’s iShares Bitcoin Trust.
- Bitcoin’s price is on the rise, potentially heading towards its all-time high, driven by institutional investors and retail traders.
The anticipation of the listing of spot Ethereum (ETH) ETFs in the U.S. has seen an increase in investments into spot Bitcoin ETFs. This move is aimed at broadening exposure to the cryptocurrency market. The latest market data reveals that U.S.-based spot Bitcoin ETFs have seen cash inflows for three consecutive weeks.
Leading Bitcoin ETFs
BlackRock’s iShares Bitcoin Trust (IBIT) has led the way. On Monday, U.S.-based spot Bitcoin ETFs recorded a total net cash inflow of approximately $533 million. It’s worth noting that only VanEck’s HODL recorded a net cash outflow on Monday, amounting to around $38.7 million.
As a result, BlackRock’s IBIT has surpassed the NASDAQ ETF $QQQ in cash inflows for the year.
Bitcoin Price Trend
Last week, Bitcoin closed around $68k, marking a more than 17 percent increase over the past two weeks. Trading at about $66,612 on Tuesday, Bitcoin is poised to wipe out the losses it incurred in June. However, for this to happen, Bitcoin needs to consistently close above $60k in the upcoming weeks to rule out a possible correction towards $48k.
Crypto analyst Ali Martinez suggests that Bitcoin has already broken out in a bullish trend in the lower time frames. In the daily chart, Bitcoin’s price against the U.S. dollar has regained the 50 and 200 Moving Averages (MA) as a support level, following a recent drop below $64K.
Technically, Bitcoin’s price could surge towards its all-time high (ATH) above $73K in the upcoming weeks. If Bitcoin consistently closes above the resistance/support range between $68K and $67K in the upcoming weeks, it will be well-positioned to reach at least $83K. This coincides with the 1.618 daily Fibonacci Retracement.
On-chain Activity and Economic Uncertainties
Bitcoin’s on-chain activity has been gradually increasing, driven by interest from institutional investors and retail traders. Despite recent sales by the German government and periodic sales by the United States, Bitcoin has shown its potential as a store of value.
Rumors about U.S. presidential candidate Donald Trump promising to add Bitcoin as a reserve currency if elected have gained significant traction. This could attract more investors over time. According to CryptoQuant, more Bitcoin investors have shown a decreased willingness to sell their coins, which could further increase the supply vs demand shock.
The U.S. Federal Reserve is expected to cut interest rates later this year to follow China, EU, and Canada following a notable decline in inflation and to bolster economic growth. The ultimate result will be increased liquidity, which is vital for the crypto bull run.
