1,901 Bitcoin (BTC) Added to ETFs in Single Day, Why No Price Jump?
Bitcoin exchange-traded-funds (ETF), in a display of investor confidence, are experiencing a significant inflow surge. On June 7, a total net inflow of 1,901 Bitcoin worth $132 million was reportedly added to the ETFs in just 24 hours. According to Julian Fahrer, the inflows mark 19 straight days of such movements.
According to inflow distribution, BlackRock had the highest inflow with a whopping 2,450 BTC worth $169.2 million. Grayscale recorded an outflow of 524 BTC valued at $36.3 million, while Ark logged a double- digit, securing 99 BTC inflow at $6.9 million.
Despite these huge inflows that signal a substantial uptick in interest from investors, the price of Bitcoin dropped below the $70,000 mark to $69,428.07, down 2.56%. The non-reaction in price has sparked speculation by the broader cryptocurrency community.
Bitcoin speculations, market sentiment and future predictions.
Notably, there is a general air of uncertainty about the performance of Bitcoin given its slow rise post-halving. Some fear that a bearish session is still lurking around. However, the amount of inflows to these investors points in the opposite direction.
As per historical precedence, the lack of price movement despite the massive inflows is indicative of an incoming bullish run, given that the longer this goes sideways the higher prices spike.
Hence, prices may soar to new peaks as predicted by industry leaders like Mike Novogratz, Robert Kiyosaki and Tom Lee. Novogratz strongly believes that Bitcoin could enter a six-digit zone before this year is over, while Kiyosaki is even bolder with a striking BTC price prediction of $350,000 by August.
Interestingly, analysts suggest that Bitcoin's price follows similar patterns after halving events, with past cycles showing significant price peaks.
If the price predictions are right, the huge inflows and accumulations by BlackRock, Grayscale and other investors would have positioned them for huge profit-taking when the largest cryptocurrency asset soars.