Spot Bitcoin ETFs in the U.S. experienced a significant inflow of over $100 million on Wednesday, June 12, led by the Fidelity Bitcoin ETF. This marked a reversal after two consecutive days of outflows, sparked by a drop in headline and monthly CPI inflation in the United States. Investors quickly responded with a rebound in Bitcoin prices, contributing to a broader crypto market recovery. However, concerns persist as the Federal Open Market Committee (FOMC) signaled only one rate cut this year after keeping interest rates unchanged.
Inflow Reversal for Spot Bitcoin ETFs
According to data from Bloomberg and Farside Investors on June 13, U.S.-based spot Bitcoin exchange-traded funds (ETFs) recorded a net inflow of $100.8 million. This reversal from two consecutive days of outflows to a significant inflow is critical for market sentiment as traders anticipate key U.S. PPI inflation data on Thursday and the Bank of Japan's interest rate decision on Friday.
BlackRock’s iShares Bitcoin ETF (IBIT) saw an inflow of $15.6 million, raising hopes for substantial inflows in the coming weeks. Following this latest inflow, BlackRock’s net inflow reached over $17.6 billion, with BTC holdings climbing to $20.86 billion.
Fidelity Bitcoin ETF (FBTC) led the spot Bitcoin ETF purchases on Wednesday, recording an inflow of $50.6 million. This was followed by Bitwise Bitcoin ETF (BITB), VanEck Bitcoin ETF (HODL), and Ark 21Shares (ARKB) Bitcoin ETF, which saw inflows of $14.5 million, $11.6 million, and $8.5 million, respectively. Other spot Bitcoin ETFs saw no net inflows.
Grayscale Bitcoin Trust (GBTC) also recorded zero inflows after a net outflow of $237 million over the previous four days. GBTC sold 3,434 BTC during this period and has sold 335,000 BTC since its launch.
BTC Price Predictions and Market Sentiment
Despite the FOMC’s indication of only one rate cut, Wall Street giants expect a Fed rate cut in September, which has renewed buying interest in spot Bitcoin ETFs. Additionally, options traders have room to sell BTC ahead of the monthly crypto expiry on June 28, with the max pain point for Bitcoin at $55,000.
Rekt Capital, a notable market analyst, stated, “This cycle has been filled with re-accumulation ranges that inevitably break to the upside over time,” suggesting buy-the-dip opportunities. Whales are actively trading BTC rather than holding it, as the price continues to fluctuate within a range.
BTC prices fell again below $67,500 as traders adjusted their positions based on the Fed’s dovish outlook on rate cuts. Currently, Bitcoin is trading at $67,559, with a 24-hour low of $67,028 and a high of $69,977. Additionally, trading volume has increased by 18% in the last 24 hours, indicating a rising interest among traders.
Conclusion
While spot Bitcoin ETFs have seen a notable inflow reversal, the market remains cautious due to potential selling pressures from options traders and uncertain regulatory signals. Investors will need to stay vigilant and monitor upcoming economic data and market trends to navigate the evolving landscape of Bitcoin and other cryptocurrencies.
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