Bitcoin ‘Money Vessel’ Hits $8B Amid ETF Inflow Struggles
Bitcoin’s on-chain inflows have surged, reflecting a robust demand for the leading cryptocurrency. This comes despite ongoing negative market sentiments stemming from a recent $19 billion crash. Over the past week, Bitcoin’s market capitalization increased by more than $8 billion, pushing it above $1.1 trillion. The growth in realized prices has exceeded $110,000, indicating strong inflow trends.
Factors Driving Bitcoin’s Demand
The increase in Bitcoin’s realized capitalization is crucial. It measures the total value held by Bitcoin holders at the price when they last moved their coins. Recent inflows are largely driven by treasury firms and exchange-traded funds (ETFs). Ki Young Ju, a prominent figure in the crypto industry and CEO of CryptoQuant, stated that the current demand primarily comes from ETFs and MicroStrategy, both of which have slowed their buy-in activities recently.
Role of Bitcoin Miners
Furthermore, Bitcoin miners have been expanding operations, which has contributed to an upward trend in the hashrate. This growth signals a long-term bullish outlook for Bitcoin’s future. Notably, large mining companies have been enhancing their capabilities. For instance, an entity associated with the Trump family invested approximately $314 million in acquiring 17,280 specialized ASIC miners.
Market Sentiment and Future Predictions
Despite the $8 billion influx of new capital, investor sentiment remains trapped in “fear” territory. This reluctance persists even after the White House announced a trade agreement between President Trump and Chinese President Xi Jinping. Analysts from Bitfinex believe that a significant turnaround is possible if ETF inflows increase and if the Federal Reserve makes any announcement regarding monetary easing.
- Potential price target for Bitcoin in November: $140,000.
- Expected ETF inflows: between $10 billion and $15 billion.
- Catalysts for price increase include potential Federal Reserve rate cuts and seasonal strength in Q4.
- Risks remain from geopolitical tensions and tariffs.
In conclusion, while Bitcoin’s recent inflows are promising, sustained growth depends on renewed activity from major buyers and shifts in market sentiment.
