Bitcoin Price Soars Past $71,000: Here’s Why
05 Juni 2024 - 9:20AM
NEWSBTC
Bitcoin has surged 2.9% in the last 24 hours, reaching a high of
$71,166 on Binance today, marking the highest price since May 21.
This rally appears to be primarily fueled by robust inflows into US
spot Bitcoin ETFs, with the sector experiencing its 16th
consecutive day of net inflows. Why Is The Bitcoin Price Up Today?
Yesterday alone, these ETFs saw an inflow of $886.6 million, with
Fidelity leading at $378.7 million—setting a new record for the
fund. BlackRock wasn’t far behind, with substantial inflows
totaling $274.4 million. Other significant contributions included
Ark with $138.7 million, Bitwise at $61 million, and the Grayscale
Bitcoin and VanEck Bitcoin Trust recording $28.2 million and $4
million respectively. Good morning fellow hodlers, We had an
absolute insane day of inflows yesterday with $886.6 million of
inflows (that’s ~12 500 BTC) Fidelity did $378.7 million, Blackrock
did $274.4 million, Ark did $138.7 million and Bitwise 61 million.
Even $GBTC had inflows worth of $28.2… pic.twitter.com/KaDdmTrq9p —
WhalePanda (@WhalePanda) June 5, 2024 The sustained interest is
further evidenced as BlackRock’s iShares Bitcoin ETF surpassed $20
billion in assets, becoming the fastest ETF to reach this
milestone, reflecting significant momentum and investor enthusiasm.
Related Reading: Best Long-Term Bitcoin Buy Signal Flashes, Hedge
Fund CEO Warns Eric Balchunas, a Bloomberg ETF analyst, emphasized
the scale of these inflows, stating, “Fidelity not messing around,
big-time flows all around today for The Ten, nearly $1b in total.
Second best day ever, since Mid-March. $3.3b in past 4wks, net YTD
at $15b (which was top end of our 12mo est). The ‘third wave’ is
turning into a tidal wave.” Despite the positive inflow dynamics,
Byzantine General (@ByzGeneral), a prominent crypto analyst,
observed that the price surge could have been more pronounced. He
highlighted the presence of substantial passive supply on spot
exchanges, which might have tempered the price increase. Related
Reading: Bitcoin ‘Zombies’ Awaken: Dormant Coins Move For First
Time In Years, What’s Going On? He noted yesterday, “High volume
today, and the perps basis actually went down a bit. I think that
we got good ETF flows today, but… They’re buying into a lot of
passive supply on spot exchanges.” He further commented today,
“What did I say, big ETF inflows. But because of all of the passive
supply it’s like an unstoppable force colliding with an immovable
object.” Moreover, it’s important to note that the price increase
was not driven by the liquidation of short positions in the BTC
futures market, which saw only $27.58 million in shorts liquidated
in the last 24 hours, according to Coinglass data. However, Willy
Woo, a renowned on-chain analyst, warned that a continued rise
could trigger a significant short squeeze. Woo said via X, “Tapping
72k is the fuse that’s set to start a liquidation cascade. $1.5b of
short positions ready to be liquidated all the way up to $75k and a
new all time high.” At press time, BTC traded at $71,075. Featured
image created with DALL·E, chart from TradingView.com
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