Bitcoin ETF Trading Surges Past $3 Billion: Is BTC Ready for New Highs?
Bitcoin ETF Trading Hits Record Highs as BTC Nears All-Time Peak
As Bitcoin (BTC) inches closer to its all-time high of $73,700, reached in March 2021, the US spot Bitcoin ETF market has emerged as a crucial driver of the cryptocurrency’s recent price surge. On Tuesday, October 24th, total trading volume for spot Bitcoin ETFs surpassed $3 billion, coinciding with Bitcoin’s price briefly exceeding the pivotal $73,000 mark for the first time in over 7 months.
Bitcoin ETF Market Poised to Surpass 1 Million BTC Holdings
Crypto investor BigRig observed a significant increase in Bitcoin ETF purchases over the past two weeks, reporting $2.673 billion in inflows since October 16th. This represents a substantial 11.8% of total ETF inflows during this period, indicating robust interest from both institutional and retail investors. BigRig also noted that prior to Tuesday’s trading volume, this period marked the best day for ETF inflows.
Bloomberg ETF analyst Eric Balchunas adds to the optimistic outlook by stating that US spot ETFs are on track to hold 1 million Bitcoin by next Wednesday, surpassing the holdings of Satoshi Nakamoto, Bitcoin’s enigmatic creator, by mid-December with an average addition of approximately 17,000 BTC per week. However, Balchunas also cautioned that market volatility could impact these projections. \”Anything can happen,\” he noted, referencing the possibility of a sudden selloff that could delay the timeline.
Conversely, if prices continue to rise and political factors, such as a potential Trump victory in the upcoming election, contribute to increased market enthusiasm, the expert believes this influx of new investors could accelerate the pace of Bitcoin’s ascent to new highs.
Whale Accumulation Fuels Optimism
Despite heightened activity in the Bitcoin ETF market, the price of the largest cryptocurrency recently fell short of its all-time high, retracing to approximately $72,250 at the time of writing. However, there are positive indicators for Bitcoin bulls.
The cryptocurrency has been consolidating above key support levels, with strong backing around the $66,000 mark. This support has effectively prevented any significant decline over the past week and has contributed to the ongoing rally. A sustained consolidation above the $70,000 level would be a notable bullish indicator for the bulls, further demonstrating the strength of the current move.
Market expert Miles Deutscher has been vocal about his bullish outlook for Bitcoin, particularly in the latter months of the year. He recently highlighted a significant trend: whales—large holders of Bitcoin—are accumulating the cryptocurrency at an \”unprecedented pace.\” This observation suggests that institutional demand for Bitcoin is currently outpacing retail interest, a shift that could have implications for massive price movements to the upside in the near future.
Deutscher further highlighted that Bitcoin exchange reserves have reached all-time lows. This means that the amount of Bitcoin available on exchanges for trading has dwindled, signaling a supply squeeze. This, combined with the growing institutional interest and the potential for a Trump victory, could further fuel Bitcoin’s price climb.
The recent surge in Bitcoin ETF trading, coupled with whale accumulation and a strong technical outlook, suggests that Bitcoin is poised to continue its upward trajectory. While market volatility remains a factor, the potential for new all-time highs appears increasingly likely.