US Bitcoin ETF Records $978M Inflows, Boosting Optimism for BTC Rally Beyond $100K
Highlights:
- US Spot Bitcoin ETF saw $978.6 million inflows on January 6, 2024.
- Bitcoin’s price surged nearly 3%, surpassing $100K, fueling market confidence.
- Analysts predict a new all-time high (ATH) if BTC maintains key support levels.
The US Spot Bitcoin ETF has recorded inflows for the second day in a row, with $978.6 million added on Monday. This comes amid Bitcoin’s significant price surge past the $100,000 milestone, signaling growing institutional interest. These sustained inflows suggest bullish momentum, with potential for further price growth.
Institutional Confidence in Bitcoin ETFs
Data from Farside Investors revealed that the inflow follows a previous $908.1 million influx, contributing to a historical cumulative total of $36.89 billion. Fidelity’s FBTC led with $370.2 million, followed by BlackRock’s IBIT at $209.1 million. While funds from issuers like Invesco and Valkyrie remained flat, the overall trend reflects heightened institutional confidence in BTC.
Corporate players such as MicroStrategy continue to invest heavily, with the company recently acquiring 1,070 BTC for approximately $101 million. Similarly, Strive Asset Management, led by Vivek Ramaswamy, filed for a Bitcoin Bond ETF to invest in BTC-related bonds.
Market Sentiment and Key Price Levels
Bitcoin’s price rose by 2.76%, trading at $101,462.39, with a 9% gain over the past week. The market cap increased to $2 trillion, while the 24-hour trading volume soared to $48.18 billion.
Key factors contributing to this bullish momentum include growing political speculation, with Donald Trump potentially influencing US financial policy and fostering support for a national Bitcoin reserve. Other countries, including Hong Kong and Germany, are reportedly considering similar strategies.
Analyst Projections and Whale Activity
Renowned analyst Michael van de Poppe suggested that Bitcoin could reach a new ATH if it holds the $98,000 support level. He indicated the next price target could be $104,087, driven by recent ETF inflows and whale activities. A report from Lookonchain revealed that three wallets withdrew 2,173 BTC (worth $221.6 million), indicating strong whale support.
Market Risks and Volatility
Despite the bullish outlook, some analysts caution against potential corrections. A sharp rise in open interest could lead to sudden market shake-offs, impacting both buyers and sellers. The crypto market’s inherent volatility means that while optimism is high, investors are advised to proceed with caution.
The combination of ETF inflows, institutional interest, and key market trends suggests Bitcoin’s rally may continue, but careful monitoring of market signals remains essential.
