Bitcoin ETFs hit $1b weekly inflows: A FOMO-driven rally?

Liquidity flowing into spot Bitcoin exchange-traded funds, or ETFs, surpassed $1 billion this week; Analysts are expecting a new all-time high for the top cryptocurrency in the next three months.

For the first time since July, weekly inflows into spot Bitcoin ETFs surpassed the billion-dollar mark, reaching $1.11 billion. This brought total cumulative net inflows across 12 offerings to $18.8 billion, an all-time high, according to SoSoValue data.

Notably, most of the inflows ($494.27 million) were recorded on September 27, led by ARK 21Shares’ ARKB, with only four of the twelve IPOs recording no inflows.

ARK 21Shares’ ARKB is $203.07 million. Fidelity’s FBTC, 123.61 million. BlackRock’s IBIT continued its 5-day inflow streak, bringing in $110.82 million. Grayscale’s GBTC made its first entry since September 16 at $26.15. Bitwise’s BITB recorded its fourth consecutive day of positive inflows, bringing in $12.91 million. VanEck’s HODL is $11.17 million. Invesco’s BTCO is $3.28 million. Valkyrie’s BRRR is $3.26 million. Franklin Templeton’s EZBC, WisdomTree’s BTCW, Grayscale Bitcoin Mini Trust, and Hashdex’s DEFI did not see any flows. Prepare for a bullish fourth quarter: analysts

The increase in inflows coincided with Bitcoin (BTC) breaking the key $65,000 resistance level; some analysts believe this could trigger a wave of FOMO-driven buying and set the stage for a run to all-time highs.

Markus Thielen of 10x Research noted in his latest analysis that Bitcoin’s recent rise above $65,000 is a significant catalyst for a potential fourth-quarter rally. He believes this move could ignite a wave of FOMO, pushing Bitcoin towards $70,000 and setting the stage for new all-time highs sooner than most expect.

Thielen noted a combination of factors driving this bullish momentum; These included a sharp increase in the issuance of stablecoins, with nearly $10 billion released after the Fed’s July meeting, flooding the crypto market with liquidity.

Thielen stated that 55% of Bitcoins currently mined come from mining pools in China. The country’s massive monetary and fiscal stimulus measures, announced immediately after the Fed’s rate cut, could trigger “significant capital outflows” into cryptocurrencies and potentially accelerate Bitcoin’s bullish momentum.

According to the analyst, with these forces coming into play, there is a strong possibility of a large increase this quarter.

“4. The likelihood of a rally in the quarter is extremely high, gains will likely be front-loaded [..] “A major rally could be on the horizon, triggering even more FOMO in the crypto space.”

Markus Thielen, head of research at 10X Research

Echoing Thielen’s bullish outlook, 21Shares’ Matt Mena told crypto.news that Bitcoin’s rise above $65,000 has already sparked strong investor interest.

According to Mena, lower-than-expected inflation data and the latest interest rate cut have increased optimism that the Fed will have a more harmonious structure and increased the appetite for risky assets. This, coupled with global liquidity injections, has created an ideal environment for Bitcoin to continue its rise as investors seek higher-yielding opportunities.

As investors flock to crypto, Mena thinks Bitcoin is poised to retest the $68,000 to $70,000 range.

“For retail investors, this presents an opportune moment to increase exposure to risk assets, especially given that BTC tends to rally during this period during halving years.”

Matt Mena, crypto researcher at 21Shares

Meanwhile, a trader on See below.

Historically when #Bitcoin Despite having a positive September, it set the stage for a generally strong fourth quarter.

History shows average Q4 returns $BTC It is at +88.84%, which means that at today’s prices, Bitcoin could end the year at $124,000

History shows that September… pic.twitter.com/yCBjvcUrLN

— StockTrader_Max (@StockTrader_Max) September 28, 2024

The Bitcoin Fear and Greed Index has rebounded sharply from its August low of 17 to 64, signaling strong market optimism.

Bitcoin traded at $65,757, up over 4% on the week and 11.18% on the month; It recorded its best rise since March.

The flagship cryptocurrency is only 10.8% shy of its all-time high announced in March 2024.