Bitcoin's recent calm has left some investors puzzled, especially given the significant inflows into spot Bitcoin ETFs and the general optimism in the equities market. Despite a 3.3% gain for the week ending June 26, many expected more from the leading cryptocurrency.
The Coinshares Valkyrie Bitcoin Fund (BRRR) saw a 3% increase last week, underscoring the growing preference among advisors and investors for ETFs as a means to gain Bitcoin exposure. Institutional demand has been particularly strong, with ETF cumulative inflows (excluding GBTC outflows) rising from 527,000 BTC to over 630,000 BTC in under three months.
This influx means issuers must buy Bitcoin to back new shares, a scenario that typically drives prices up. Yet, the expected surge hasn't materialized to the satisfaction of Bitcoin bulls. However, this could soon change.
Bitcoin and BRRR Poised for Growth
While some view the recent gains as satisfactory, others are eager for more. The delay in a significant price increase can be attributed to profit-taking by long-term Bitcoin holders and daily mining activities introducing new supply to the market. Notably, over 240,000 BTC from older bands has been distributed to the market in the past three months.
The silver lining? Selling by long-term holders is decreasing, with exchange flows hitting multi-year lows last week. Technical analysis suggests Bitcoin is on the cusp of a potentially massive upward move. Some analysts predict that reaching $110,000 could trigger bearish futures liquidations, and surpassing $112,000 might pave the way to $140,000.
For those tracking these developments, the CoinShares Crypto ETF Hub offers further insights and strategies.
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