Bitcoin ETF inflows surge over $1b last week, miners see rally

Bitcoin ETFs see record inflows as miners expand operations; Analysts from HC Wainwright attributed the BTC rise to the easing of global monetary policies.

According to HC Wainwright’s latest report shared with crypto.news, Bitcoin (BTC) increased by 3.2% to $65,618 in the week ending September 29. This contradicts the usual trend, as September is generally a weak month for BTC.

Historically, September has seen an average decline of 3.7%, but this year’s gains indicate a change. Analysts at the firm attribute this unusual rise to the loosening of monetary policy by global central banks with 21 interest rate cuts in September. Such actions often increase BTC prices, as reflected by the rise in BTC after the Fed’s recent interest rate cut.

However, crypto markets fell on October 1 as geopolitical tensions between Israel and Iran triggered selling, with Bitcoin falling 3.9% and Ethereum (ETH) falling over 6%.

The conflict also affected crypto mining stocks; Marathon Digital and CleanSpark shares fell approximately 9% and 6%, respectively.

Spot ETFs and miner performance

Spot Bitcoin ETFs saw inflows of over $1 billion last week, according to analysts, marking the first such weekly inflow since July. This indicates strong investor interest, with $494.4 million coming in on September 27 alone. Total inflows into these ETFs since January have been $18.8 billion.

Miners also had a remarkable week last week. Mining stocks rose 15.1% weekly as Bitcoin prices rose, leading to hash prices rising; This is an important metric that shows miner profitability.

Positive developments in the field of BTC mining

Analysts from HC Wainwight think the Bitcoin mining industry is poised for growth. Hut 8 started its GPU-as-a-service business by signing a five-year deal with an AI cloud developer. This deal is expected to generate $20 million in annual revenue.

Meanwhile, Cipher expanded its operations by purchasing a new 300 MW mining site in West Texas for $67.5 million.

Additionally, Bitdeer tested the second-generation SEAL02 mining chip, meeting key efficiency targets and planning mass production in 2024.