Key Takeaways:
Bitcoin, the world’s most valuable cryptocurrency, has once again reached the $70,000 mark. The surge was driven by increased interest in the spot BTC exchange-traded funds (ETF) and growing optimism about US regulations supporting the asset class.
Bitcoin Hits $70,000 For First Time Since June
Over the past week, the price of BTC has increased by nearly 10%, with a 2.8% increase posted on Sunday, helping it cross $69,000. This was the apex cryptocurrency’s best weekly performance in more than a month.
The latest surge is largely the result of over half a billion dollars in inflows to the Bitcoin ETFs in a single day. According to data compiled by Bloomberg, US spot Bitcoin ETFs lured almost $2.4 billion in net inflows in the six days through October 18.
October 14 recorded the largest aggregate net inflow during that period with $555.9 million coming into the 11 investment funds tracking the price of BTC in the US. This also marked their largest daily inflow since June, the last time Bitcoin traded above $70,000.
US Bitcoin ETFs Attract $2.4 Billion in Weekly Inflows, Suggesting Increased Demand
The Fidelity Wise Bitcoin Origin Fund (FBTC) led the charts with inflows of $239.3 million, followed by the Bitwise Bitcoin ETF (BITB) with just over $100 million. Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT), which has consistently been the top-performing ETF, received just $79.5 million. The ARK 21Shares Bitcoin ETF (ARKB) attracted $69.8 million, and the Grayscale Bitcoin Trust (GBTC), recorded an inflow of $37.8 million.
Bloomberg’s senior ETF analyst Eric Balchunas compared the recent surge of Bitcoin ETFs to that of the dynamics observed in gold-based financial products. He believes there is a growing acceptance in the market for Bitcoin as a mainstream investment asset.
In an X post, he wrote that since the launch of the Bitcoin spot ETFs in January, the products have record highs five times but gold ETFs have only hit record highs 30 times in their history. He also noted that gold has only received $1.4 billion in net inflows this year while the BTC ETFs are far ahead with $19 billion.
The performance of the ETFs has been a key metric that has influenced the price of Bitcoin. It was the demand for the products when they launched that helped BTC reach an all-time high of $73,798 in March.
US Presidential Elections Will Decide the Next Bitcoin Bull Run
The US Presidential elections are also playing a part in Bitcoin’s price, with many expecting crypto rules to become friendlier after November 5. Republican candidate and former President, Donald Trump, has vowed to become the biggest voice for the industry in Washington. His Democratic rival, Vice President Kamala Harris, announced she will support a regulatory framework for crypto assets. However, her opinion contrasts with the crackdown suffered by the industry under the Biden administration.
David Lawant, research head at crypto brokerage FalconX, said the elections and the global macroeconomic environment are two key market trends dictating Bitcoin’s price. In a note to investors, he wrote that the Bitcoin options market indicates that forward implied volatility is “heavily clustered” around the election day and “somewhat subdued” leading to it and sometime after.
Latest News: Is It A Good Time To Buy GOAT? The Viral Solana Memecoin That’s Surged 20,000% Since Launch
