Crypto News

Bitcoin’s Resurgence: Whales Accumulate As ETFs Drive Net Inflows

The sentiment around Bitcoin has turned decidedly bullish following a surprise surge past $66,000 on Wednesday, now climbing above $67,200. This price jump has sparked renewed interest among large holders. 

Notably, addresses holding over 1,000 BTC have collectively increased their holdings by 250,000 BTC since the launch of Bitcoin ETFs, bringing their total holdings back to pre-FTX collapse levels.

One positive development for Bitcoin is the significant drop in transaction fees, reaching their lowest point in three months. This decline retraces much of the fee surge that followed the launch of Runes, making transactions more cost-effective and potentially encouraging more trading activity.

Bitcoin ETF Net Inflow Remains Positive For Consecutive Days With Massive Figure 

On May 17, 2024, Bitcoin ETFs recorded a net inflow of $222 million, capping off a week of continuous positive inflows. This influx has contributed to Bitcoin’s impressive 10.3% price rebound over the past seven days. Grayscale’s Bitcoin Trust (GBTC) has seen single-day inflows for three consecutive trading days, reflecting sustained investor confidence.

Among the ETFs, Fidelity’s Bitcoin ETF (FBTC) recorded the highest single-day inflow with $99.4 million, followed by BlackRock’s iShares Bitcoin Trust (IBIT) with $38.1 million. These substantial inflows from major financial institutions underscore the growing acceptance and mainstream adoption of Bitcoin as a legitimate investment asset.

The increase in Bitcoin holdings by whale addresses and the positive ETF inflows suggest that the market is gearing up for a potentially extended bullish phase. As Bitcoin continues to gain traction and institutional support, the cryptocurrency market appears poised for further growth, provided that these trends persist. Investors will be closely monitoring stablecoin market caps and ETF inflows as key indicators of market momentum and future price action.

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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