The post Bitcoin ETF Inflows Hit $223M as Institutional Demand Grows appeared first on Coinpedia Fintech News
Bitcoin (BTC) price rallied more than 5 percent on Wednesday after rebounding from the crucial support range between $94.3k and $96.6k earlier this week. The flagship coin retested the prior all-time high (ATH) range of between $101,219 and $101,998 before slightly retracing to trade about $100,780 on Thursday, December 12, during the mid-London session.
The Bitcoin Futures Open Interest (OI) increased by 6 percent to hover about $62.8 billion at the time of this report. With the recent heavy daily liquidations in the leveraged market, Bitcoin’s funding rate has significantly declined to below the recent normal.
Bitcoin Whales Accumulates Relentlessly
The supply of Bitcoin on centralized exchanges has continued to decline sharply in the past year fueled by heightened demand from institutional investors. In the past 30 days, the supply of Bitcoin on CEXes declined by about 120k to hover about 2.23 million at the time of this writing.
As more institutions adopt Bitcoin, its market potential grows. Read our Bitcoin price prediction for expert insights on what’s next!
According to market data from Cryptoquant, Bitcoin has been attracting about $80 billion from long-term investors per month in the past year. Remarkably, the recent capital inflows to Bitcoin have significantly overshadowed the funds inflow in the past 15 years.
Moreover, whale investors have been relentlessly accumulating Bitcoin in anticipation of the United States approving a strategic BTC reserve. According to the latest market data, the US spot Bitcoin ETFs registered a net cash inflow of about $223 million on Wednesday, thus bringing the cumulative total net inflow to about $34.58 billion.
What Next?
From a technical standpoint, Bitcoin price has been forming a different signal from the fundamentals at hand. In the daily time frame, Bitcoin price against the US dollar has formed a potential double top, coupled with bearish divergence on the daily Relative Strength Index (RSI), thus signaling a possible midterm correction.
In case of a consistent close above $102k in the coming weeks, Bitcoin price will be aiming for $120k next, which coincides with the 0.618 daily Fibonacci extension. However, Bitcoin price could easily retrace toward the support level above $85k in the coming weeks before continuing with the bullish rally early next year.
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FAQs
Bitcoin ETFs attract institutional investments, increasing demand and reducing supply, often driving BTC prices higher.
BTC may target $120k if it breaks $102k resistance or retrace to $85k support before resuming its bullish trend in 2024.
