Following two consecutive days of significant outflows, Spot Bitcoin ETFs have regained steam, recording inflows exceeding $100 million. This positive outcome follows the release of the US May CPI data, which shows a decline in the inflation rate.
The news triggered a brief recovery for Bitcoin, creating a ripple effect across the broader crypto market. However, more risks lie in wait as concerns over selling pressure from options traders remain.
Spot Bitcoin ETFs Record Inflows Again After Recent Decline
US Spot Bitcoin ETFs recorded an inflow of approximately $100.8 million following the release of the May CPI data, which boosted investor sentiment. However, the dust has yet to settle as traders and investors await vital US PPI inflation data, which will be released on Thursday, June 13.
Again, the Bank of Japan’s upcoming interest rate decision this Friday is another factor that could influence investor sentiment.
For the ETF inflow breakdown, BlackRock’s IBIT recorded $15.6 million in inflows, moving its net inflow above $17.6 billion. Following the latest inflows, BlackRock’s Bitcoin holding has increased to $20.86 billion.
Meanwhile, the Fidelity Bitcoin ETF (FBTC) dominated the spot Bitcoin ETF buys on Wednesday with an inflow of $50.6 million. Other Bitcoin ETFs also saw significant inflows.
Bitwise’s BITB recorded $14.5 million in inflow, VanEck’s HODL received $11.6 million, and Ark Invest’s ARKB received $8.5 million in inflow.
Conversely, Grayscale’s Bitcoin Trust (GBTC) had no inflows following a total outflow of $237 million in the last four days. GBTC sold 3434 BTC in the last four trading days and 335,000 Bitcoin since its launch.
Some Macroeconomic Factors Influencing Bitcoin
Wall Street institutions are anticipating a Fed rate cut this September. The FOMC is hinting at only one rate cut. While a single rate cut may be below expectations, it has reignited buying interest in spot Bitcoin ETFs.
Moreover, options traders have enough time to sell their Bitcoin holdings before the June 28 expiry date. Their maximum pain point for Bitcoin is $55,000.
These Fed rate cuts and options traders’ possible sale of BTC could affect Bitcoin’s price. Uncertainties about the next market direction remain, which has prevented further ascent in the price of Bitcoin.
Consequently, Bitcoin has remained below $70,000 despite the latest inflows into Spot Bitcoin ETFs. BTC trades at $67,271, with a moderate decline in the past 24 hours.
However, crypto analyst and trader Rekt Capital remains bullish about Bitcoin’s trajectory. He noted that the current market cycle is filled with re-accumulation ranges and BTC will inevitability break to the upside over time.
The analyst identified the current buy-the-dip opportunities. He also noted that whales are not holding BTC. Instead, they are trading it after the price moves in a range.
Another analyst, Willy Woo, was extremely bullish on Bitcoin. Woo believes that Bitcoin’s market cap is a great way to measure its progress for those seeking the truth and is optimistic that it will only get bigger.
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