Bitcoin ETFs experienced unprecedented inflows as miners scaled up their operations — analysts from H.C. Wainwright attribute the BTC rally to a relaxation in global monetary policies.
In a recent report shared with crypto.news, H.C. Wainwright noted that Bitcoin (BTC) ended the week of September 29 with a 3.2% gain, reaching $65,618. This marks a departure from its typical performance, as September generally sees weaker prices for BTC.
Historically, September averages a decline of 3.7%; however, this year’s increase indicates a potential change in trend. The firm’s analysts connect this rare uptick to central banks around the globe easing monetary policies, highlighted by 21 interest rate cuts in September. Such measures typically uplift BTC prices, evidenced by Bitcoin’s rally following the Fed’s recent rate reduction.
Nonetheless, crypto markets took a hit on October 1 as rising geopolitical tensions between Israel and Iran spurred a sell-off, leading to a 3.9% decrease in Bitcoin and over a 6% drop in Ethereum (ETH).
This conflict also affected crypto-mining shares, with Marathon Digital and CleanSpark witnessing declines of approximately 9% and 6%, respectively.
Spot ETFs and miner performance
According to the analysts, spot Bitcoin ETFs recorded more than $1 billion in inflows over the past week, representing the first weekly inflows of this magnitude since July. This surge indicates robust investor interest, with $494.4 million received on September 27 alone. Since the beginning of the year, these ETFs have gathered a total of $18.8 billion in inflows.
Moreover, miners enjoyed a substantial week as mining stocks increased by 15.1% week-over-week in response to rising Bitcoin prices, which in turn boosted hash prices — a vital indicator of miner profitability.
Positive developments in the BTC mining sector
Analysts from H.C. Wainwright believe the Bitcoin mining sector is set for growth. Hut 8 has launched its GPU-as-a-service business, securing a five-year contract with an AI cloud developer that is projected to generate $20 million annually.
In addition, Cipher finalized its acquisition of a new 300 MW mining site in West Texas for $67.5 million, broadening its operational capabilities.
Furthermore, Bitdeer has tested its second-generation SEAL02 mining chip, achieving significant efficiency benchmarks and is planning for mass production in 2024.
