Crypto News

Bitcoin Surges 23% In Three Weeks: ETF Demand And Market Dynamics

Bitcoin’s impressive run continues, with a 23% gain over the past three weeks, pushing its value from $52,500 to over $65,000.

A key driver of this momentum is the growing demand for the Bitcoin Spot ETF.

Last week saw significant inflows into Bitcoin ETFs, with BlackRock, Fidelity, and Ark reporting combined inflows of $324 million on September 26th. This surge in demand from U.S. investors has propelled Short-Term Holders back into profit.

However, caution is warranted as the futures market shows signs of overheating. Open Interest has reached $19.1 billion, a level surpassed only six times since March 2024, each preceding a price drop.

Bitcoin Spot ETFs Holdings Positions For Long-term Holder Supply 

Meanwhile, Spot Bitcoin ETF holdings are transitioning to Long-Term Holder Supply as coins pass the 155-day mark. While this shift may appear bullish, it often occurs in the late stages of a bull market.

Another notable development is the growing demand for Bitcoin yield, driven by Coinbase’s new Bitcoin-pegged token, $cbBTC. Currently, 1% of Bitcoin’s supply is locked in DeFi.

ETF Inflows:

– BlackRock ETF IBIT: $499 million
– 21Shares Bitcoin ETF ARKB: $269 million
– Total net inflow: $1.11 billion (September 23-27)

As Bitcoin’s momentum continues, keep an eye on these key metrics:

– ETF demand
– Futures market overheating
– Long-Term Holder Supply shifts
– DeFi growth

Will Bitcoin’s upward trajectory sustain, or will market dynamics shift? Stay informed to make informed decisions.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: promesaartstudio//123RF // Image Effects by Colorcinch

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