The price of Bitcoin (BTC) surged above the $67,000 mark as Grayscale’s Bitcoin ETF (GBTC) saw declining outflows. GBTC experienced only $79.3 million in outflows on Thursday, marking a significant decrease from previous days. Additionally, Bitcoin spot ETFs have seen net inflows over the past three days, with a combined net outflow of $106 million on Thursday. BlackRock’s ETF IBIT saw a net inflow of $144 million, while other funds registered another $40 million in inflows. Overall, Bitcoin spot ETFs have attracted a cumulative net inflow of $12.3 billion. Despite fluctuations in price caused by spikes in open interest with leverage players, the positive flows in Bitcoin ETFs coincide with the surge in the price of Bitcoin.
The surge in Bitcoin’s price, reaching as high as $69,291 before trimming gains, is attributed to the reduced sustained demand and some profit-taking in BTC Spot ETFs. The slow pace of cumulative inflows compared to previous months is expected, given that most BTC Spot ETF investors are already in profit. Analysts are bullish on Bitcoin ahead of the upcoming halving event, expected to occur in 17 days. The event is historically marked by significant points followed by 9-18 months of an uptrend, culminating in cycle peaks. However, for the first time, BTC reached its all-time high in anticipation of the halving, indicating a departure from previous cycles. There is a potential uptrend for the remaining nine months of 2024, leading to a cycle peak expected between Q4 2024 and Q2 2025.
Analysts expect Bitcoin’s price to reach $75,000 by the time of the halving event. The halving event will also impact mining companies as BTC block rewards decrease and the BTC hashrate consistently rises. This has led to the profitability of mining farms steadily declining, prompting the need for greater capital efficiency to remain viable. The current market dynamics suggest a positive outlook for Bitcoin in the coming months, with analysts predicting an uptrend for the remainder of 2024. The surge in Bitcoin’s price and positive flows in Bitcoin ETFs reflect investor confidence in the cryptocurrency amid ongoing market fluctuations.
The recent surge in Bitcoin’s price and positive flows in Bitcoin ETFs are a result of declining outflows from Grayscale’s Bitcoin ETF (GBTC) and net inflows in Bitcoin spot ETFs. As Bitcoin approaches the upcoming halving event, analysts expect the cryptocurrency to reach $75,000. The event historically marks significant points followed by uptrends, with a cycle peak expected between Q4 2024 and Q2 2025. The halving event will also impact mining companies, with decreasing block rewards and rising hashrates leading to a decline in profitability for mining farms. Overall, the current market dynamics suggest a positive outlook for Bitcoin, with analysts anticipating continued growth in the coming months. Investors remain confident in Bitcoin’s potential, as reflected in the recent surge in price and positive flows in ETFs.
