- Bitcoin’s price began to rise at the start of the week following a quiet weekend.
- US-based Bitcoin ETFs have recently seen significant inflows.
- The streak without outflows from major Bitcoin ETFs has reached a noteworthy milestone.
Bitcoin Price Surges As ETF Inflows Hit New Highs: What You Need to Know
Bitcoin Rallies Amid Substantial ETF Inflows
After experiencing relatively low volatility over the weekend, Bitcoin prices surged at the beginning of the business week, reaching a high of $71,767 on Bitstamp. This price movement correlated closely with substantial inflows into US-based spot Bitcoin ETFs, totaling nearly $500 million on a single day.
Consistent Inflows Mark a Turning Point for Bitcoin ETFs
Bitcoin ETFs in the US have been experiencing an exceptional period of consistent inflows. Notably, the last recorded outflow from these financial instruments was almost a month ago. Besides some minor outflows, like the $100 million withdrawn from Ark Invest’s ARKB on May 30, the general trend has been overwhelmingly positive. This adds up to a 16-day streak of net positive inflows, matching the record set earlier this year in February. Recent data shows that June 4 was the second-largest inflow day with $886.6 million, while the most recent figures indicate an additional $488.1 million poured into these ETFs.
Leading Contributors to Bitcoin’s ETF Inflow Surge
Fidelity’s FBTC took the lead in the latest round of inflows by attracting over $220 million. Not far behind, BlackRock’s IBIT accumulated $155.4 million, and even Grayscale’s GBTC, which has generally seen outflows since its conversion, gathered $14.6 million. This robust participation by major financial institutions is one of the key drivers behind Bitcoin’s renewed price momentum.
The Impact of ETF Inflows on Bitcoin’s Market Performance
The uptick in Bitcoin price could largely be attributed to these significant ETF inflows. Following a dip to around $69,000 on June 4, Bitcoin quickly rebounded, climbing to a 15-day peak of $71,767. This recent surge brought Bitcoin within 3% of its all-time high, which stood at $73,737 on March 14. The current sentiment in the cryptocurrency community is optimistic, with many believing that breaking new all-time highs is imminent.
Conclusion
The consistent and significant inflows into US-based Bitcoin ETFs have bolstered Bitcoin’s price and could signal a positive trend for the cryptocurrency market. With major players like Fidelity, BlackRock, and Grayscale contributing to the inflow surge, Bitcoin’s market performance appears poised for further upward momentum. Investors and market watchers alike are now eyeing the next potential all-time high, underscoring the ongoing bullish outlook for Bitcoin.
