Bitcoin ETFs Record $2.4 Billion Inflows in 3 Weeks

Bitcoin ETFs are gaining momentum, with reports indicating up to $105 million in positive flows on Monday. This brings the cumulative inflows to nearly $2.40 billion in the last three weeks.

Experts ascribe the inflows to increased global liquidity, which can boost the Bitcoin price by improving market sentiment.

Bitcoin ETFs Demand Returns with $105 Million Inflows on Monday

Bitcoin ETFs market rebound continues to strengthen, with reports showing $105 million inflows on June 3. This marks 15 consecutive trading days (three weeks) of positive flows and brings the cumulative inflows to $2.40 billion, as the on-chain data platform SpotOnChain shows.

Fidelity took the day with its Bitcoin ETF, FBTC, recording up to $77 million (over 1,110 BTC) in inflows on Monday.  Meanwhile, Grayscale’s GBTC and BlackRock’s IBIT recorded zero net flows the same day. Bitwise ETF, BITB, recorded $14 million in inflows, while Ark21Shares’ ARKB ETF saw up to $10 million in positive flows.

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

Bitcoin ETF flows
BTC ETF Flows: Source: Bitcoin Archive

The spike in inflows coincides with an increase in global liquidity. Bitcoin analyst Willy Woo highlights that the relationship between BTC price and M2 expansion reflects broader market sentiment and economic conditions.

A high M2 expansion indicates a loose monetary policy and increased money supply. In response, Bitcoin’s price often rises as investors seek alternative assets for potential returns.

Notably, Bitcoin’s price usually reacts positively to increases in the money supply and inflation concerns. This happens as investors see BTC as a hedge against traditional fiat currencies such as the US dollar, which could depreciate because of inflation.

BTC Price is in the Accumulation Phase

Bitfinex analysts noted in a Monday market update that Bitcoin ETF inflows for the last two weeks have averaged $136M [million] per day. “This is 4x the $32M daily sell pressure from miners,” they said, observing that Bitcoin is in an accumulation period.

The analysts also highlighted that the correction phase could be nearing its end. They ascribed the recent drop from $73,777 to selling activity among long-term holders. The report indicates that long-term holders have started to re-accumulate BTC for the first time since December 2023.

Investor confidence has risen since the April 20 Bitcoin halving, reinforcing the bullish thesis. This can be seen in the surge in Bitcoin’s realized capitalization, approaching $600 billion.

Also Read: Bitcoin Halving Cycles and Investment Strategies: What To Know

BTC realized price
BTC Realized Cap. Source: Glassnode

The BTC Realized Cap metric shows Bitcoin’s true value based on the price at which coins last moved. It provides a unique perspective on market dynamics, investor behavior, and historical trends within the Bitcoin ecosystem.

Bitcoin Dynamics Outlook Amid Shifting Investor Sentiment

The Bitcoin price has continued to consolidate along an ascending trend line since May 1, with a series of higher lows. Standing 22% above the range low of $56,552, BTC looks primed for more gains as it attempts to break consolidation.

Tailwinds sprout from a buy signal executed when the Relative Strength Index (RSI) crosses above the signal line (yellow band). Traders heeding this call could see Bitcoin’s price head north. The Awesome Oscillator’s position in positive territory reveals bullish sentiment, adding credence to the bullish thesis.

On the flip side, the volume profile shows that while there is a lot of bullish activity (orange nodes) waiting to interact with Bitcoin price at current levels, there is even more bearish activity (grey nodes). With this, the bulls must haul BTC above the $72,149 threshold for Bitcoin price to escape the thicket.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

Bitcoin price chart
BTC/USDT 1D Chart: Source: TradingView

A drop below $67,594 could trigger panic selling, potentially pushing the price down to $65,000. If that level doesn’t hold, Bitcoin could revisit the $61,169 support level, presenting a potential buying opportunity for investors.

Bitcoin price chart
BTC/USDT 1D Chart: Source: TradingView

In a dire case where bearish momentum abounds, a candlestick close below $56,000 would invalidate the bullish outlook. At the time of writing, Bitcoin price is trading at $69,429.

The post Bitcoin ETFs Record $2.4 Billion Inflows in 3 Weeks appeared first on BeInCrypto.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

Latest posts

Chainlink’s CCIP Enables Seamless Onchain Payments for XPay by XSwap
XSwap has adopted Chianlink’s CCIP for its new XPay tool, ensuring secure and efficient onchain pa...
default post thumbnail
Legendary Trader Warns: Bitcoin Could Plunge Below $50,000 If These Key Levels Break
Renowned trader Peter Brandt recently provided insights on the Bitcoin price potential market moveme...
default post thumbnail
Dogecoin Sees Monumental Surge In Transactions As Whales Spend $129 Million
Dogecoin is currently at a critical price junction that might determine its price trajectory in the ...
default post thumbnail
MATIC Price Tests 8-Month Support As Polygon Unveils New Governance Hub
Polygon’s native token, MATIC, has experienced a notable disparity compared to the broader cryptoc...
default post thumbnail
Ethereum HODLers Scoop 298,000 ETH In 24 Ahead Of Spot ETF Trading
Ethereum is under pressure at press time, tumbling roughly 15% from March 2024. As sellers press on,...
default post thumbnail
Ethereum Withdrawals From Coinbase Top $1.2 Billion, What’s Going On?
Ethereum has seen a number of notable withdrawals that suggests that crypto whales are expecting a r...
default post thumbnail
Dogecoin Plunges 11%, But This On-Chain Cushion Could End Decline
Dogecoin has observed a plummet of 11% over the past week, but this decline may not continue further...
default post thumbnail
Polkadot (DOT) Token Utility
Polkadot is a protocol designed to connect different blockchains, enabling the transfer of value and...
default post thumbnail
Bitcoin-Focused Book Inspired Bill To Abolish Federal Reserve
US Congressman Thomas Massie has said that he was inspired by a Bitcoin-focused book, The Bitcoin St...
default post thumbnail
UwU Lend Offers $5M Bounty For Information On Attacker
The team behind the UwU Lend protocol has offered a $5 million bounty to whoever can identify its at...
Read more posts