‘Sustained’ Bitcoin ETF inflows may ‘buoy’ price despite slowing spot buying
A multi-day streak of spot Bitcoin (BTC) exchange-traded fund inflow is starting to form, which may prop up BTC price even with fading spot buyer demand, according to Bitfinex analysts.
“Sustained ETF inflows could buoy the BTC price,” Bitfinex analysts opined in a Sept. 23 report as a “significant counter-argument” to their prediction of short-term price consolidation due to the decline in Bitcoin purchases on crypto exchanges.
“With Bitcoin spot market buying slowing, evidenced by spot Cumulative Volume Delta flattening when the price reached $63,500, we foresee BTC moving in a range in the near term,” the analysts explained.
Spot Bitcoin ETFs form positive streak in bearish month
On Sept. 24, spot Bitcoin ETFs saw total cumulative inflows of $136 million, marking a four-day streak of positive inflows, according to Farside data. This comes during a month often viewed as bearish for Bitcoin traders.
Spot Bitcoin ETFs have seen a total of $17.84 billion inflows since its launch in January. Source: Farside
CoinGlass data shows that September is the worst month for Bitcoin, with the asset posting an average monthly loss of 4.49% over the last 11 years.
At the time of publication, Bitcoin’s price is up approximately 6.26% since Sept. 18, trading at $63,713, according to TradingView data.
Bitcoin up 6.26% over the past seven days. Source: TradingView
Meanwhile, Bitcoin’s dominance — which represents Bitcoin’s share of the total crypto market cap — has dipped 1.35% since Sept. 18, now clocking 57.62%, as per TradingView data.
Bitfinex analysts suggested that Bitcoin could see “further upside” if ETF inflows remain positive while “traditional finance markets like the S&P 500 continue to rally.”
Price consolidation is likely without an increase in spot demand
However, if spot buyer demand doesn’t return, the “most likely scenario” is Bitcoin’s price will consolidate or see a “partial correction” without “sustained spot buying.”
Related: BlackRock Bitcoin ETF demands 12-hour BTC withdrawals from Coinbase
There is a general consensus in the industry that the US election in November will play a crucial role in Bitcoin’s future price direction.
However, some industry leaders expect Bitcoin to reach six figures within the next twelve months, regardless of the outcome.
On Sept. 20, Cointelegraph reported that Geoff Kendrick, global head of digital assets research at Standard Chartered, a cross-border bank, believes Bitcoin will likely reach $200,000 by the end of 2025 regardless of who wins the 2024 United States presidential election.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
