BlackRock’s Bitcoin ETF (IBIT) witnessed a significant inflow of $224.1 million on Monday, dominating the Bitcoin ETF market and reigniting optimism for a potential BTC price surge toward $70,000. Despite Bitcoin briefly dipping below its key support level of $63,386, the substantial inflows are fueling hopes of a strong rebound.
On Monday, August 26, the U.S. Bitcoin spot ETFs reported a total of $202.6 million in net inflows, with BlackRock’s IBIT leading the charge. This surge in inflows, according to data from Farside UK, underscores robust institutional interest in Bitcoin, driven in part by speculation of a Federal Reserve rate cut. Franklin Templeton’s EZBC ETF and WisdomTree’s BTCW also saw positive inflows, contributing $5.5 million and $5.1 million respectively.
Diverging ETF Strategies
While BlackRock’s ETF garnered significant attention, other Bitcoin ETFs experienced contrasting trends. Fidelity’s FBTC recorded a net outflow of $8.3 million, and Bitwise’s BITB saw a loss of $16.6 million. VanEck’s HODL ETF also reported a minor outflow of $7.2 million, reflecting diverse strategies among investors. Grayscale’s GBTC, Valkyrie’s BRRR, and Invesco Galaxy’s BTCO reported no inflows, highlighting the mixed performance across the ETF landscape.
In a recent development, BlackRock disclosed that it added 4,000 shares of its IBIT Bitcoin ETF to its Strategic Global Bond Fund, raising the fund’s total holdings to 16,000 IBIT shares. This move has spurred further optimism about BlackRock’s Bitcoin ETF as inflows remain strong. Additionally, in Hong Kong, Bitcoin ETF assets under management (AUM) have surged to $2.2 billion, signaling growing global interest.
BTC Eyes $70,000 Amid Inflows
The surge in inflows for BlackRock’s Bitcoin ETF comes at a pivotal moment for BTC’s price action. Bitcoin is currently trading at $62,901.78, having dipped below the 20-day Exponential Moving Average (EMA) of $63,386, indicating a critical support breach. Analysts suggest that reclaiming the $64,000 level could be a breakout point for Bitcoin, potentially pushing it towards the $70,000 target within the week.
Increased capital inflows into Bitcoin ETFs often correspond with rising prices, especially during periods of heightened market confidence. However, if Bitcoin fails to rebound above the 20-day EMA, it could trigger a wave of selling pressure, potentially dragging the price down to $62,000 or even further to $60,000 amid panic selling.
Despite the recent positive momentum, some market analysts remain cautious. QCP Capital has tempered its predictions for a new all-time high (ATH) for Bitcoin, despite optimism around potential Federal Reserve rate cuts. While a breakout above $70,000 may be unlikely in the immediate term, they maintain that a fresh ATH is still on the horizon for the fourth quarter.
As the market watches closely, the performance of Bitcoin ETFs like BlackRock’s IBIT will be pivotal in determining whether Bitcoin can reclaim its upward trajectory and break through key resistance levels.
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