This week, liquidity flowing into spot Bitcoin exchange-traded funds (ETFs) exceeded $1 billion, with analysts predicting a potential all-time high for the leading cryptocurrency within the next three months.
For the first time since July, weekly inflows into spot Bitcoin ETFs topped the billion-dollar threshold, totaling $1.11 billion. This boosts the overall cumulative net inflows across a dozen offerings to $18.8 billion, setting a new record, according to SoSoValue data.
Significantly, a majority of the inflows—$494.27 million—occurred on September 27, led by ARK 21Shares’ ARKB, while only four of the twelve offerings reported no inflows.
- ARK 21Shares’ ARKB, $203.07 million.
- Fidelity’s FBTC, 123.61 million.
- BlackRock’s IBIT continued its streak with $110.82 million over five days.
- Grayscale’s GBTC attracted $26.15 million, its first inflow since September 16.
- Bitwise’s BITB recorded its fourth consecutive day of positive inflows, contributing $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 inflows.
Prepare for a bullish Q4: Analysts
The surge in inflows coincided with Bitcoin (BTC) surpassing a significant resistance level at $65,000, which some analysts believe may trigger a wave of FOMO-driven buying, setting the groundwork for a march toward new all-time highs.
In a recent analysis, 10x Research’s Markus Thielen highlighted that Bitcoin’s breakthrough above $65,000 is a key catalyst for a potential Q4 rally. He posits that this development could provoke considerable FOMO, driving Bitcoin towards $70,000 and positioning it for new all-time highs sooner than anticipated.
Thielen attributes this bullish trajectory to several factors, including a notable increase in stablecoin minting—nearly $10 billion issued post the Fed’s July meeting—infusing the crypto market with liquidity.
He also drew attention to the fact that 55% of the mined Bitcoins are sourced from mining pools in China. The substantial monetary and fiscal stimulus measures announced immediately following the Fed’s rate cut could incite “significant capital outflows” into cryptocurrencies, potentially reinforcing Bitcoin’s bullish momentum.
Given these dynamics, the likelihood of a major surge this quarter appears robust, as per the analyst.
“The chances of a Q4 rally are exceptionally high, with gains likely to be front-loaded. A significant surge could be imminent, creating even more FOMO throughout the crypto landscape.”
Markus Thielen, head of research at 10X Research
Aligning with Thielen’s optimistic view, Matt Mena of 21Shares informed crypto.news that Bitcoin’s rise beyond $65,000 is already sparking strong interest from investors.
Mena noted that the recent lower-than-expected inflation data and the latest rate cut have heightened optimism for a more accommodating Fed, enhancing the appeal for risk assets. In conjunction with global liquidity injections, this has established a favorable environment for Bitcoin’s ascent as investors actively seek higher returns.
As capital flows into crypto, Mena predicts Bitcoin is poised for a re-evaluation within the $68,000 to $70,000 range.
“This marks an opportune time for retail investors to boost their exposure to risk assets, especially considering BTC’s historical tendency to rally during this period in halving years.”
Matt Mena, crypto researcher at 21Shares
Meanwhile, on X, a trader suggested that Bitcoin might reach $124,000 by the end of 2024, referencing historical data that indicates an average Q4 return of 88.84% following a positive September. See below.
The Bitcoin Fear and Greed Index has surged to 64, recovering sharply from its August low of 17, reflecting strong market optimism.
At present, Bitcoin is trading at $65,757, an increase of over 4% for the week and 11.18% for the month—its best performance since March.
The premier cryptocurrency is now just 10.8% away from its all-time high recorded in March 2024.
Dutch
English
French
German
Greek
Italian
Portuguese
Russian
Spanish