Bitcoin stalls below $70K despite $20 billion ETF inflow milestone
Despite the recent milestone of $20 billion in spot Bitcoin ETF inflows, the Bitcoin price has yet to break through the $70,000 threshold. The much-anticipated price surge remains elusive, despite positive market developments.
Milestone: $20 billion in Bitcoin ETF inflows reached
On October 17, a milestone was reached when the total inflow of U.S. spot Bitcoin ETFs surpassed $20 billion, just ten months after their introduction. In comparison, gold ETFs took nearly five years to reach this level.
Bitcoin climbed to a peak of $69,487 on October 21 but later pulled back to a trading price of $68,570. According to market analysts, the delayed effect of ETF inflows may explain why the price continues to stall below $70,000.
Delayed price reaction to ETF inflows
Market analysts point out that Bitcoin ETF inflows often take several days to have a noticeable impact on the price. This is because some traders use ETF flows as exit liquidity, which dampens the immediate price surge. Sustained interest in the spot market is essential for a breakthrough above $70,000.
Can positive ETF inflows drive a new all-time high?
Positive ETF inflows could potentially push the Bitcoin price to new highs in the future. After their launch in February, U.S. Bitcoin ETFs generated 75% of all new investments in Bitcoin, which at the time led to a surge past $50,000.
BlackRock's iShares Bitcoin Trust ETF sees significant inflow
Last week, BlackRock's iShares Bitcoin Trust ETF saw an inflow of more than $1.17 billion worth of Bitcoin. Despite this massive inflow, the price reaction seems delayed, possibly due to the trading strategies some investors use, such as delta-neutral positions. This explains why the immediate impact on the price has been limited.
Bullish signals for Bitcoin: Green weekly close
A bullish signal for the market is Bitcoin‘s weekly close above the psychological level of $69,000. This could pave the way for a price rise toward the re-accumulation range above $71,000, a level not seen since June 2024. If this trend continues, Bitcoin could soon explore new highs