Bitcoin influx into ETFs creates speculation: Could a $120,000 Bitcoin surge be imminent?
In recent days, the Bitcoin market has shown signs of a potential bullish trend, with a series of indicators pointing towards a possible rally above the $120,000 mark.
One of the key factors driving this optimism is the increased activity in Bitcoin Exchange-Traded Funds (ETFs). U.S. Bitcoin ETFs saw their largest daily inflows since July on September 10th, with a total of 5,900 BTC added. This return of steady inflows suggests a renewed interest in Bitcoin from institutions, a positive sign for the future of the cryptocurrency.
The timing of this renewed demand for Bitcoin ETFs suggests a renewed appetite for exposure at current levels. This, coupled with the rise in Open Interest, indicates traders are putting more money behind their Bitcoin positions, suggesting growing confidence in Bitcoin's short-term direction. As per CryptoQuant's data, the Open Interest in Bitcoin has been steadily climbing since April and is currently at approximately $42 billion.
Whale activity has also started to pick up, with the whale-to-exchange ratio climbing over the past day, indicating accumulation by larger holders. This accumulation by whales often points to a potential leg higher in Bitcoin's price. Notable whales include public companies doubling their bitcoin purchases, institutional activity like Strategy adding nearly 5,000 BTC worth over $530 million, and companies like Metaplanet expanding bitcoin reserves and business operations related to bitcoin income generation.
These signs of strong demand from wholesalers, coupled with resilient bitcoin interest despite global crises and rising open interest in derivatives linked to bitcoin ETFs, support the bullish momentum. However, it's important to note that the market rarely moves in a straight line, and ETF inflows and whale accumulation are encouraging, but they do not guarantee Bitcoin's price direction.
If Bitcoin holds its footing above the $114,000 level, the path toward another test of $120,000 becomes clearer. If the momentum holds, there is a potential for a breakout toward $120,000. However, a slip back below the $114,000 support level could quickly eliminate optimism and pull prices back into a wider consolidation range.
It's worth noting that while these indicators suggest a bullish outlook, there are still voices of dissent. Peter Schiff, for instance, has stated that Bitcoin is topping out. The validity of this claim remains to be seen.
Sources: Glassnode, CryptoQuant.
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