Institutional Investors Pour $942 Million Into Bitcoin, Will This Trigger A Rally To $80,000?
May 21 2024 - 3:00PM
NEWSBTC
Institutional investors are doubling their bets on Bitcoin, with
investment funds related to the flagship crypto recording massive
inflows last week. This development signals a bullish sentiment
among these investors which could trigger a Bitcoin rally to
$80,000. Bitcoin Investment Funds Record $942 Million In
Inflows According to CoinShares’ latest weekly report, Bitcoin
investment products recorded a net inflow of $942 million. These
inflows are said to have been “an immediate response to the
lower-than-expected CPI report on Wednesday,” with 89% of the total
flows coming in the latter three trading days of last week.
Related Reading: Crypto Analyst Sounds Warning Alarm For Potential
50-60% Crash In Chainlink Price, Here’s Why The Consumer Price
Index (CPI) inflation data, which came in lower than expected, is
believed to have restored investors’ confidence in the market. The
data showed that inflation in the US may be slowing, raising the
prospect of the Federal Reserve cutting interest rates. Lower
interest rates are good for the crypto market since they will make
investors more willing to invest in risk assets like Bitcoin.
The US accounted for most of the inflows into BTC, with $1 billion
flowing into US Spot Bitcoin ETFs last week. Grayscale’s Bitcoin
Trust (GBTC), which has recorded over $16 billion in outflows since
the ETF approval in January, also saw inflows (for the first time)
of $18 million last week. This trend of significant inflows
into these Spot Bitcoin ETFs likely continues this week. Farside
investors revealed in an X (formerly Twitter) post that these funds
recorded a net inflow of $237.2 million on May 20. Interestingly,
none of these Spot Bitcoin ETFs saw outflows on the day, with GBTC
recording an inflow of $9.3 million. It is also worth noting
that while BTC saw inflows of $942 million, there were almost no
flows into short Bitcoin, with CoinShares noting that this implies
a positive outlook amongst investors. Altcoins like Solana,
Chainlink, and Cardano also recorded considerable inflows, with
$4.9 million, $3.7 million, and $1.9 million flowing into these
crypto tokens, respectively. BTC’s Bull Run Might Be Back On
With the Spot Bitcoin ETFs again seeing impressive demand and
recording significant inflows, there is a feeling that Bitcoin’s
bull run might be in full force. These investment funds were known
to have contributed significantly to the flagship crypto’s hitting
a new all-time high (ATH) of $73,750 in March. Related
Reading: Cardano Whales Return To The Table, Increase Massive
Holdings By 10%e Therefore, these funds could again spark another
rally for Bitcoin, sending it to $80,000 and beyond. Besides the
Spot Bitcoin ETFs, other factors contribute to a bullish
continuation for BTC. One is the macroeconomic data, which shows
that the economic situation in the US could be improving.
Meanwhile, from a technical analysis perspective, the worst looks
over for Bitcoin with crypto analyst Rekt Capital, revealing that
the crypto token has left the post-halving danger zone.
Featured image from Dall.E, chart from Tradingview.com
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