Thomas Daniels
Spot Bitcoin exchange-traded funds (ETFs) experienced a major liquidity surge, with weekly inflows surpassing $1 billion for the first time since July. According to SoSoValue data, the total inflows hit $1.11 billion this week, pushing cumulative net inflows across the 12 available offerings to $18.8 billion, marking a new record.
On September 27 alone, inflows reached $494.27 million, led by ARK 21Shares’ ARKB, which accounted for $203.07 million. In total, eight out of twelve offerings recorded positive inflows during the week:
- ARK 21Shares’ ARKB: $203.07 million
- Fidelity’s FBTC: $123.61 million
- BlackRock’s IBIT: $110.82 million
- Grayscale’s GBTC: $26.15 million
- Bitwise’s BITB: $12.91 million
- VanEck’s HODL: $11.17 million
- Invesco’s BTCO: $3.28 million
- Valkyrie’s BRRR: $3.26 million
Meanwhile, Franklin Templeton’s EZBC, WisdomTree’s BTCW, Grayscale Bitcoin Mini Trust, and Hashdex’s DEFI saw no flows.
Analysts Forecast Bullish Q4 for Bitcoin
The surge in ETF inflows comes as Bitcoin broke a key resistance level at $65,000, a move seen by many analysts as a precursor to a FOMO (fear of missing out)-driven rally that could push Bitcoin to new all-time highs within the next quarter.
Markus Thielen, head of research at 10X Research, believes Bitcoin’s recent breakout is a strong catalyst for a Q4 rally, potentially driving the cryptocurrency to $70,000. Thielen cited several factors contributing to the current bullish momentum, including a significant rise in stablecoin issuance—over $10 billion since the Federal Reserve’s July meeting—which has flooded the market with liquidity.
Further supporting the case for a rally, Thielen noted that 55% of mined Bitcoins originate from mining pools in China, and recent monetary and fiscal stimulus in the country could spur large capital outflows into cryptocurrencies, accelerating Bitcoin’s momentum.
“The likelihood of a Q4 rally is exceptionally high, with gains likely front-loaded. A major surge could be on the horizon, sparking even more FOMO across the crypto space,” Thielen commented.
Matt Mena, a crypto researcher at 21Shares, echoed this optimism, pointing to lower-than-expected inflation data and the Federal Reserve’s recent rate cut, which have bolstered risk appetite. Mena predicts that Bitcoin could retest the $68,000 to $70,000 range soon, benefiting from the global liquidity environment and heightened investor interest.
“For retail investors, this presents an opportune moment to increase exposure to risk assets, especially given BTC’s historical tendency to rally around this time during halving years,” Mena stated.
As sentiment strengthens, the Bitcoin Fear and Greed Index surged to 64, up sharply from its August low of 17, signaling strong market optimism. Bitcoin was trading at $65,757, up over 4% for the week and 11.18% for the month, bringing it within 10.8% of its all-time high set in March 2024.
Some traders, citing historical data, suggest Bitcoin could even reach $124,000 by the end of 2024, based on an average Q4 return of 88.84% following a positive September.
