- Bitcoin (BTC) experienced its first significant surge in three weeks, briefly crossing the $64,000 mark before retreating to $63,450 on Friday morning in European trading hours.
- Ethereum (ETH) demonstrated a notable uptick, reaching $2,550, reflecting a 5% increase in the past day and 9% in the past week.
- Significant inflows into Bitcoin and Ethereum spot exchange-traded funds (ETFs) have fueled the upward market trend, with substantial contributions from major players like Ark Invest, 21Shares, and Fidelity.
Bitcoin and Ethereum rally fueled by substantial ETF inflows, signaling a prolonged bullish trend.
Bitcoin Breaks $64,000 Mark Amid ETF Inflows
After surging past the $64,000 mark for the first time in three weeks, Bitcoin (BTC) settled around $63,450. This represents a 2% rise over the past 24 hours and a 10% gain for the week. This bullish momentum has been significantly boosted by sizable inflows into Bitcoin spot ETFs. For instance, Ark Invest and 21Shares’ ETF (ARKB) received a staggering $81 million in a single day, contributing to a net inflow of $158 million for Bitcoin ETFs on Thursday. Fidelity’s Bitcoin ETF (FBTC) also reported strong performance with a net inflow of $49.8 million.
Ethereum’s Uptrend and Investor Confidence
Ethereum (ETH) mirrored Bitcoin’s upward trajectory, trading at $2,550. This represents a 5% rise over the past 24 hours and a 9% increase over the week. Investors have also shown a growing interest in Ethereum ETFs, with BlackRock’s ETF (ETHA) recording a net inflow of $5.2 million. These inflows suggest robust investor confidence and a potential for continued rally in the cryptocurrency market.
Market Analysts Anticipate Prolonged Bullish Run
Market experts are optimistic about the ongoing rally. According to Bob Wallden, Head of Trading at Abra, the market is showing signs of a prolonged bullish run. “Crypto is trading at month’s highs, and the market is set for a stronger rally. News flow is bullish, showing consensus that the current trend is just starting,” Wallden stated. He also noted that October historically favors Bitcoin, predicting that if current momentum persists, Bitcoin could exceed $74,000 by year-end.
Surge in Liquidations Amid Bullish Market
The rise in Bitcoin’s price has led to substantial liquidations over the past 24 hours. CoinGlass data reveals that 58,848 traders were liquidated, leading to $156.04 million in losses. Short positions were the most affected, accounting for $105.34 million in liquidations, while long positions saw $50.43 million liquidated. Alex Kuptsikevich, Senior Market Analyst at FxPro, highlighted that the total crypto market capitalization increased by 3.2%, reaching $2.21 trillion. He added that Bitcoin’s break above $64,000 is a significant move towards testing its 200-day moving average.
Solana’s Rally and Technical Indicators
Solana (SOL) has also shown impressive performance, rallying 20% from its recent lows before a key Federal Reserve meeting. The coin has consolidated above its 50-day moving average and is approaching the 200-day average, with current levels around $150. Kuptsikevich remarked that Solana’s technical indicators suggest a sustained upward trend, provided it can maintain its current momentum.
Bitcoin as a Hedge Against Geopolitical Risks
BlackRock has underscored Bitcoin’s potential as a hedge against geopolitical and economic uncertainties. The firm emphasized that while Bitcoin may show short-term co-movements with equities and other risk assets, its long-term fundamentals differ significantly from most traditional investment assets. “As the global investment community grapples with rising geopolitical tensions, concerns over the state of U.S. debt and deficits, and increased political instability around the world, Bitcoin may be seen as an increasingly unique diversifier against some of these fiscal, monetary, and geopolitical risk factors investors may face elsewhere in their portfolios,” BlackRock noted.
Conclusion
The recent surge in Bitcoin and Ethereum, bolstered by substantial ETF inflows, reflects growing investor confidence and hints at a prolonged bullish trend. Market analysts remain optimistic, with projections suggesting even higher targets for Bitcoin by year-end. Additionally, the rising interest in alternative cryptocurrencies like Solana and Bitcoin’s potential role as a geopolitical hedge contribute to the evolving dynamics of the crypto market. Investors should keep a close watch on these developments as they navigate the complexities of the digital asset landscape.
