Bitcoin ETFs are gaining traction, with reports showing approximately $105 million in positive flows on Monday alone. This boosts the total inflows to nearly $2.40 billion over the past three weeks
Demand for Bitcoin ETFs rebounds with $105 million in inflows recorded on Monday.
The strengthening market rebound for Bitcoin ETFs continues, with reports indicating $105 million in inflows on June 3. This marks 15 consecutive trading days of positive flows, bringing cumulative inflows to $2.40 billion, according to on-chain data platform SpotOnChain.
Fidelity’s Bitcoin ETF, FBTC, led the day with inflows of up to $77 million (over 1,110 BTC). Meanwhile, Grayscale’s GBTC and BlackRock’s IBIT reported zero net flows on the same day. Bitwise ETF, BITB, recorded $14 million in inflows, while Ark21Shares’ ARKB ETF saw up to $10 million in positive flows.
Source: Bitcoin Archive
The surge in inflows aligns with a rise in global liquidity. Bitcoin analyst Willy Woo emphasizes that the correlation between BTC price and M2 expansion mirrors broader market sentiment and economic conditions.
A significant M2 expansion signals a loose monetary policy and a rise in money supply. Consequently, Bitcoin’s price typically increases as investors turn to alternative assets in pursuit of potential returns.
It’s noteworthy that Bitcoin’s price tends to respond favorably to expansions in the money supply and concerns about inflation. Investors view BTC as a hedge against traditional fiat currencies like the US dollar, which may depreciate due to inflation.
BTC Enters Accumulation Stage: Insights for Market Participants
Bitfinex analysts highlighted in their Monday market update that Bitcoin ETF inflows have averaged $136 million per day over the last two weeks, surpassing miner sell pressure by four times. They observed this as indicative of Bitcoin entering an accumulation period.
Additionally, the analysts suggested that the correction phase may be nearing its conclusion, attributing the recent drop from $73,777 to selling activity among long-term holders. Notably, the report indicated a resurgence in long-term holders re-accumulating BTC for the first time since December 2023.
Furthermore, investor confidence has strengthened since the April 20 Bitcoin halving, bolstering the bullish outlook. This sentiment is reflected in the surge of Bitcoin’s realized capitalization, nearing $600 billion.
Source: Glassnode
The BTC Realized Cap metric offers a distinct view of Bitcoin’s actual value, determined by the price at which coins were last transacted. It presents a unique lens through which to analyze market dynamics, investor actions, and historical patterns within the Bitcoin ecosystem.
Analyzing Bitcoin Dynamics Amid Shifting Investor Sentiment
Bitcoin has maintained a consolidation pattern along an upward trend line since May 1, marked by consecutive higher lows. Currently standing 22% above the range low of $56,552, BTC appears poised for further upward movement as it seeks to break free from consolidation.
Positive indicators include a buy signal triggered by the Relative Strength Index (RSI) crossing above the signal line (yellow band). Traders following this signal may anticipate a northward trajectory for Bitcoin’s price. Additionally, the Awesome Oscillator’s positioning in positive territory reflects bullish sentiment, lending support to the bullish outlook.
Conversely, the volume profile suggests a balance between bullish (orange nodes) and bearish (grey nodes) activity around current price levels. However, there is a notable presence of bearish activity, indicating potential resistance. To overcome this, bulls need to propel BTC above the $72,149 threshold to navigate through resistance levels effectively.
Source: TradingView
A breach of the $67,594 mark may prompt panic selling, potentially driving the price toward $65,000. Further downside could lead Bitcoin to retest the $61,169 support level, offering a potential buying opportunity for investors.
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