Bitcoin ETF Inflows Hit All-Time High: Will BTC Price Reach $55,000 by the Weekend?
Bitcoin optimism rose as spot Bitcoin exchange-traded funds (ETFs) closed for the month on the U.S. stock market. Once the BTC price reaches $50,000, things will normalize again after months of negative speculation. BTC is rebounding due to ETF inflows, the upcoming halving event, and a strong US stock market.
Spot Bitcoin ETF inflows hit new highs!
Spot Bitcoin ETFs saw a significant surge in investor interest this week, recording net inflows of $493.3 million on Monday. This influx of funds into the cryptocurrency market encouraged the Bitcoin price to break the important psychological barrier of $50,000. Both factors show that investors are showing greater interest in regulated assets approved by the SEC and that there is room for further adoption in the coming weeks.
In particular, major players such as BlackRock IBIT, Fidelity FBTC, and Ark 21Shares Bitcoin ETF have seen a significant influx of institutional investor interest in Bitcoin. Currently, BlackRock’s iShares Bitcoin Trust dominates inflows with $374.7 million. The Ark 21Shares Bitcoin ETF raised $40 million, and Fidelity’s Wise Origin Bitcoin Fund raised $151.9 million.
However, amid the surge in Bitcoin ETF inflows, outflows of $95 million from Grayscale and $20.8 million from the Invesco Galaxy ETF offset these inflows, but net inflows still exceeded $500 million. This mixed outlook shows how complex the market is right now, with some investors excited about Bitcoin’s potential while others remain cautious.
Will BTC surpass $55,000?
Despite the concerns, economists are cautiously optimistic about the price of Bitcoin. Many experts expect it to cross $50,000 and then move towards $55,000. Investor confidence has reached “extreme greed” territory, with a 79 on the Crypto Fear & Greed Index.
Creating a more optimistic mood CryptoQuant CEO and founder Joo Ki-young BTC predicted, “This year, due to ETF inflows, it could reach $112,000, and in the worst case, $55,000.”
However, as institutional investment in Bitcoin ETFs increases, concerns are growing about market overheating and corrections. Some derivatives traders expect Bitcoin to reach $70,000 by the end of the month. Investors should avoid making hasty decisions for fear of missing out on unexpected upside.
Bitcoin Demand Soars as ETFs Absorb Tradeable Supply
In related news, Bitcoin advocate Anthony Pompliano highlighted the surge in Bitcoin demand, saying it is 12.5 times higher than Bitcoin’s daily production. He emphasized that about 80% of the total supply of Bitcoin has remained untouched for six months, leaving only about $200 billion in transaction value. Pompliano credits the Bitcoin ETF for absorbing 5% of the tradable supply in just 30 days.
Spot Bitcoin ETF trading volume recently exceeded $1 billion, with BlackRock’s iShares Bitcoin Trust hitting $341.2 million. While this milestone is significant, analyst James Seyffart noted that it is still below initial trading volume following the ETF’s debut.