Bitcoin rose 2.9% in the last 24 hours, hitting a high of $71,166 on Binance today, marking its highest price since May 21. This growth appears to be mainly driven by sturdy inflows into US Bitcoin cash ETFs, with the sector experiencing its 16th consecutive day of net inflows.
Why did the price of Bitcoin boost today?
Just yesterday, these ETFs saw an inflow of $886.6 million, with Fidelity leading the way with $378.7 million, which set a modern record for the fund. BlackRock wasn’t far behind, with significant inflows totaling $274.4 million. Other notable contributions included Ark with $138.7 million, Bitwise with $61 million, and Grayscale Bitcoin and VanEck Bitcoin Trust, which recorded $28.2 million and $4 million, respectively.
Good morning, dear hodlers,
Yesterday we had an absolutely crazy day of inflows with an inflow of $886.6 million (or ~12,500 BTC)
Fidelity earned $378.7 million, Blackrock earned $274.4 million, Ark earned $138.7 million and Bitwise earned $61 million.
Even $GBTC had receipts worth $28.2… pic.twitter.com/KaDdmTrq9p
— WhalePanda (@WhalePanda) June 5, 2024
The continued interest was further evidenced by the fact that BlackRock’s iShares Bitcoin ETF surpassed $20 billion in assets, becoming the fastest ETF to reach this milestone, reflecting significant investor momentum and enthusiasm.
The scale of these inflows was emphasized by Eric Balchunas, Bloomberg ETF analyst, stating, “Fidelity is not slacking off, today The Ten has great flows with a total value of almost $1 billion. The second best day on record since mid-March. $3.3 billion in the last 4 weeks, year-to-date net of $15 billion (which was at the high end of our 12-month estimate). “The ‘third wave’ is turning into a tidal wave.”
Despite the positive inflow dynamics, Byzantine General (@ByzGeneral), a prominent cryptocurrency analyst, noted that the price boost could have been more pronounced. He highlighted the presence of significant passive supply on spot exchanges, which could have mitigated the price boost.
Yesterday he noted: “High volume today and the perpetrator base has actually dropped a bit. I think we had good ETF flow today, but… They’re buying a lot of passive supply on spot exchanges. He then commented today: “What did I say, huge ETF inflows. But because of all the passive power, it’s like an unstoppable force colliding with a stationary object.
Moreover, it is critical to note that the price boost was not due to the liquidation of tiny positions in the BTC futures market, which, according to Coinglass data, saw only $27.58 million of tiny positions liquidated in the last 24 hours.
However, Willy Woo, a renowned supply chain analyst, warned that further growth could result in a significant reduction in tiny positions. Solicit he said by X, “Touching 72k it is a fuse set to start the liquidation cascade. $1.5 Billion Low Positions Ready to Liquidate Up to $75,000 dollars is a modern all-time record.
At the time of publication, the price of BTC was $71,075.
Featured image created with DALL·E, chart from TradingView.com
