As a seasoned researcher with a knack for deciphering market trends, I can confidently say that the latest surge in liquidity flowing into spot Bitcoin ETFs is a clear indication of an impending bullish Q4. The recent breakthrough past the $65,000 resistance level and the subsequent inflows suggest that we might be on the verge of witnessing another wave of FOMO-driven buying, potentially pushing Bitcoin towards new all-time highs.
This week, investments pouring into bitcoin spot Exchange-Traded Funds (ETFs) exceeded $1 billion. Analysts forecast that the leading cryptocurrency could hit a fresh record high within the next three months.
For the first time since July, weekly inflows into spot Bitcoin ETFs surpassed the billion-dollar mark, reaching $1.11 billion. This pushed the total cumulative net inflows across the 12 offerings to $18.8 billion, marking a new all-time high, per SoSoValue data.
Significantly, about $494.27 million in inflows were primarily observed on September 27, predominantly driven by ARK 21Shares’ ARKB. In this period, just four out of the twelve investments did not see any flow.
- ARK 21Shares’ ARKB, $203.07 million.
Fidelity’s FBTC, 123.61 million.
BlackRock’s IBIT continued its 5-day inflow streak bringing in $110.82 million.
Grayscale’s GBTC drew in $26.15, its first inflow since Sept. 16
Bitwise’s BITB logged its fourth straight day of positive inflows, bringing in $12.91 million.
VanEck’s HODL, $11.17 million.
Invesco’s BTCO, $3.28 million.
Valkyrie’s BRRR, $3.26 million.
Franklin Templeton’s EZBC, WisdomTree’s BTCW, Grayscale Bitcoin Mini Trust, and Hashdex’s DEFI saw no flows.
Brace for a bullish Q4: analysts
As Bitcoin (BTC) surpassed the crucial resistance point at $65,000, there was an increase in inflows. This event has left some analysts speculating that it could trigger a frenzy of fear-of-missing-out (FOMO) purchases and potentially pave the way for reaching even higher all-time highs.
10x Research’s Markus Thielen has pointed out in his recent analysis that Bitcoin surging past $65,000 serves as a significant trigger for a potential rally in Q4. He thinks this surge may spark fear of missing out (FOMO), propelling Bitcoin towards $70,000 and paving the way for new record highs earlier than many anticipate.
Thielen highlighted several elements fueling the positive trend, such as an increase in the production of stablecoins – approximately $10 billion generated post the Federal Reserve’s July meeting, which has led to a surge of liquidity within the cryptocurrency market.
Thielen pointed out that about half of all mined Bitcoins originate from mining pools based in China. The country’s substantial financial and economic stimulus actions following the Fed’s interest rate reduction might cause a “substantial flow of capital” towards cryptocurrencies, which could boost Bitcoin’s upward trend even further.
Based on these factors, it seems quite likely that we’ll see a significant increase this quarter, as suggested by the analyst.
There’s an extremely high chance that we might witness a significant market rally by the end of Q4. This rally may see early and substantial gains, potentially igniting fear of missing out (FOMO) throughout the cryptocurrency sector, leading to further price surges.
Markus Thielen, head of research at 10X Research
Following the optimistic stance expressed by Thielen, Matt Mena from 21Shares has shared with crypto.news his belief that Bitcoin surpassing $65,000 has sparked significant investment curiosity among investors.
As Mena explains, the less than anticipated inflation figures and the recent interest rate reduction have ignited optimism about a more lenient Federal Reserve, which in turn has increased the desire for riskier investments. Combined with global liquidity infusions, this situation sets up a favorable context for Bitcoin’s ongoing growth as investors hunt for higher-yielding possibilities.
In recent times, there’s been a surge of interest from investors in cryptocurrency. Mena predicts that Bitcoin could soon challenge its previous highs by retesting the $68,000 to $70,000 price point.
Right now might be a good time for regular investors to boost their investments in higher-risk assets, considering that Bitcoin often experiences growth during the periods of its halving cycle.
Matt Mena, crypto researcher at 21Shares
Currently, in the financial world, a trader has proposed that the value of Bitcoin could potentially soar to $124,000 by the year 2024. This forecast is based on historical trends, where the average return in Q4 is approximately 88.84% following a positive September. Have a look below for more details.
Historically speaking, a favorable September for #Bitcoin has frequently led to a robust fourth quarter performance. In fact, on average, Bitcoin’s return during Q4 is approximately 88.84%, which, considering today’s prices, could potentially drive the value of Bitcoin up to around $124,000 by year-end.
— StockTrader_Max (@StockTrader_Max) September 28, 2024
The Bitcoin Fear and Greed Index has significantly increased, jumping from a low of 17 in August to a high of 64, indicating a high level of market enthusiasm and confidence.
As an analyst, I’ve observed that Bitcoin has been on a steady upward trajectory, currently trading at approximately $65,757. This marks a significant increase of over 4% for the week and an impressive 11.18% for the month. This is its strongest performance since March, demonstrating a robust resurgence in its value.
The flagship cryptocurrency was just 10.8% shy of its all-time high posted in March 2024.
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2024-09-28 15:58