The rising inflows coincide with a surge in the price of Bitcoin, which is up nearly 25% so far this year.
Bitcoin ETF products have witnessed an unprecedented weekly inflow, totaling nearly $2.5 billion globally. This increase has driven assets under management (AUM) in crypto funds to their December 2021 levels.
Record Inflows and the Rise of Bitcoin ETFs
Last week, crypto funds, including those run by industry giants such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares, saw record inflows. This inflow is dominated by the recently introduced spot Bitcoin exchange-traded funds (ETFs) in the US, bringing year-to-date inflows to an impressive $5.2 billion.
The rising inflows coincide with a rise in the price of Bitcoin, which is up nearly 25% so far this year. The combined effect of inflows and rising prices has lifted the assets under management of these investment firms to $67 billion, the highest level since the peak of the last bull market in December 2021.
American Dominion and Altcoin Funds
The United States has continued to dominate the scene, accounting for 99% of weekly entries. Despite this concentration, funds based in Switzerland and Germany have also seen modest inflows.
In contrast, Sweden experienced significant capital outflows, highlighting regional variations in investor sentiment towards crypto funds. Bitcoin investment products remain the main focus, capturing 99% of inflows.
However, there is also notable activity in altcoin-based funds. Ether leads among altcoins, with $21.1 million in inflows, while the Avalanche, Chainlink, and Polygon funds have also seen steady additions. On the negative side, Solana funds experienced outflows, likely affected by the recent network downtime.
Bitcoin (BTC) Price Analysis
This month has been particularly bullish for the world’s leading cryptocurrency, witnessing an impressive 27% rise over the past 30 days. Furthermore, it recently made a much-awaited breakthrough above the critical psychological threshold of $50,000.
This advance has opened the door for Bitcoin to venture into new price territories and has fueled speculation that it could surpass its all-time high during the year.
From a technical perspective, Bitcoin price has consistently remained above the 0.5 level on the Fibonacci retracement chart, indicating a strong sign of sustainability. This stability suggests that the price is likely to remain above the $50,000 mark.
Furthermore, the Bollinger Bands are starting to contract, suggesting that the price could stabilize for a short period. The Directional Movement Index (DMI) reveals that buying momentum has dominated the Bitcoin market in recent days.
However, the positive directional indicator (+DI) at 20.11 appears to be at risk of a downside versus the average directional index (ADX) at 17.04 and the negative directional indicator (-DI) at 14.47.
In summary, capital inflows into Bitcoin ETFs and their price momentum are currently moving in tandem. This direct relationship can drive the price of Bitcoin to unprecedented levels, especially with the expectation of greater inflows in the near future. next Funds and ETFs.
Bitcoin Forecast
According to CryptoPredictions, the BTC Price is forecast for today (20.02.2024) to be in the $43,865.990 – $64,508.809 price range. Bitcoin is predicted to end today at $51,607,047.
On the other hand, cryptocurrency analyst and investor Crypto Jelle has expressed his optimism towards Bitcoin price action, via social media platform X (formerly Twitter). According to the expert, if Bitcoin manages to maintain its current momentum amid the cryptocurrency market rally, it is possible that the BTC price will reach $60,000.
By Leonardo Perez
