Bitcoin ETF Inflow Fuels Rally: Will BTC Price Break $56K Soon?
Elena R20 Sept 20242 min read
As fears of a near-term crypto capitulation fade, Bitcoin (BTC) has maintained its upward trajectory. In the last 24 hours, Bitcoin’s price surged by over 3%, reaching a high of $64,082 before slipping to $63,787 during early trading hours on Friday in the Asian markets.
With this surge, the total cryptocurrency market cap rose by 2%, now hovering around $2.3 trillion. Leading altcoins like Ethereum (ETH) and Solana (SOL) also signaled the potential for a bullish recovery in the coming weeks.
A Look at Bitcoin Supply on Exchanges
Over the past 30 days, Bitcoin’s supply on centralized exchanges has dropped by more than 97,600 coins, primarily driven by outflows from Coinbase Pro and Binance Holdings Ltd. Despite Bitcoin’s macro price correction over the past six months, this trend of declining BTC reserves on exchanges has persisted.
A key driver behind the reduced supply on exchanges is the substantial cash inflows into U.S. spot Bitcoin ETFs. On Thursday alone, spot BTC ETFs saw net cash inflows of around $158 million, bringing the total assets under management to approximately $57.8 billion.
Notably, none of the major spot BTC ETFs recorded any net outflows, with Fidelity’s FBTC and ARK 21Shares Bitcoin ETF (ARKB) leading the inflows.
Bitcoin Technical Outlook
From a technical perspective, Bitcoin faces a critical resistance level at $64,000, compounded by the recent death cross between the daily 50-day and 200-day moving averages (MAs).
Popular crypto analyst Ali Martinez highlighted that Bitcoin must consistently close above the 200-day MA to confirm a bullish continuation, which could push the price toward new all-time highs.
Bitcoin bulls have gained momentum, spurred by the Federal Reserve’s recent rate cut, signaling a broader economic shift. With expectations of a continued bullish rebound in October and the months ahead, the crypto market could be in for a strong finish to the year.
Also Check Out: Ethereum Price Analysis: ETH Price Ready For A Major Reversal In Q4?
The future of Bitcoin is looking bright. Is this the beginning of a new bull run?
