Bitcoin Price: How $1B ETF Inflows Could Accelerate BTC Momentum To $80,000 This Week?
Highlights
- Bitcoin reaches a new record high of $73,609 a day after US CPI report.
- Bitcoin ETFs’ increasing volume reinforces the rally likely to reach $80,000 in March.
- The extremely overbought RSI begs for caution among investors signalling possible retracement.
Bitcoin price is back on its north-facing trajectory after facing some volatility on Tuesday due to the US CPI coming in hotter than expected. The leading crypto briefly tumbled under $70,000 as investors reacted to inflation rising to 0.4% in February and 3.2% yearly.
However, as discussed, Bitcoin’s corrections tend to fill up quickly during bull markets due to investors buying the dip to maximize gains in the long run.
The uptrend resumed after the pullback, reinforced by positive sentiment across the market and skyrocketing Bitcoin ETF net inflows.
Bitcoin price hovers at $73,140 at the tail end of European business hours. Amid the ongoing price discovery, BTC has set a new record high of $73,607, boating a modest 1.3% increase in 24 hours in addition to a 10% spike in seven days and 53% in 30 days.
Bitcoin Price Tags New ATH As ETF Daily Total Net Inflow Hits $1B
The daily total daily total inflow into Bitcoin ETFs surged to a record high of $1.05 billion, according to SoSoValue.
Black’s IBIT ETF towers above the rest with the highest daily net inflow of approximately $849 million. Ark Invest’s ARKB is the second-best performing ETF, boasting $92 million in daily net inflow followed by VanEck’s HODL’s $82 million.
On the other hand, Grayscale’s GBTC’s ETF daily net inflow decreased on Tuesday to -$78 million. The other ETF in the red is BTCO by Invesco and Galaxy Digital with -$19 million.
Overall, ETFs are positively influencing Bitcoin price and spreading sentiment across the market. As net inflow volume rockets to new record highs, it translates to increasing demand for BTC, thus bolstering the rally above $70,000.
SoSoValue data shows that Bitcoin contract positions are steadily on the up-facing trajectory, reaching a new all-time high of $33.94 billion. In the last bull market, Bitcoin contract positions reached the highest level of $23 billion.
Also significantly up is the funding rate on select derivatives exchanges such as Binance and OKX. The funding rates on both platforms hit a new level — the highest since early 2023, Chinese reporter Wu Blockchain highlighted in a post on X.
According to SoSo Value, Bitcoin contract positions have continued to hit record highs recently. Bitcoin contract holdings have reached 33.94 billion U.S. dollars, far exceeding the high of 23.04 billion in the last bull market (November 2021). At the same time, the Bitcoin… pic.twitter.com/d7baUL9PGz
— Wu Blockchain (@WuBlockchain) March 13, 2024
Bitcoin Price Prediction: Is $80,000 The Next Stop?
Bitcoin has posted only one small weekly bearish candle since the beginning of February. A lock-step pattern appears to be guiding the rally, where BTC makes a sharp breakout followed by a minor retracement.
Just like on Tuesday when Bitcoin dropped under $70,000 for a moment, dips are filling up quickly, allowing investors to dollar-cost average (DCA) aiming to maximize returns in the bull market.
Based on the strong Relative Strength Index (RSI) holding at 89 in the overbought region, Bitcoin is far from exhausting the uptrend. The price discovery mode may continue to $80,000 before any signs of a pre-halving retrace.
Bitcoin will undergo its four-year halving cycle in April when miner rewards will be cut in half from 6.25 BTC to 3.125 BTC. The rally to new all-time highs in Q1 can be attributed partly to the ETF and the buzz surrounding halving.
It has become a norm for investors to buy the rumour in anticipation of major developments such as the rally in Q4 last year due to the ETF approval in March.
The same investors are the ones that often sell the news, cashing out profits before or immediately after the actual event. As Bitcoin rockets to new highs, investors should plan accordingly to avoid sudden bull traps if the price corrects before or after halving.
On one hand, the RSI’s position shows that buyers have the upper hand and the uptrend is steady. However, in the last bull run, the RSI topped out at 95, marking the beginning of a lengthy correction.
With that in mind, it may be prudent to proceed with caution and keep a cash-rich wallet to buy dips. In case of a correction, $70,000 comes up as the immediate local support. Losing this support could pave the way for further losses where Bitcoin retests lower levels towards $60,000 before resuming the uptrend.
- SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown
- Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility
- October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges
- Hashdex Adds Cardano to Crypto Index Fund as ADA Gains SEC Listing Eligibility
- U.S. Treasury To Ease Tax Rule on Unrealized Bitcoin Gains, Aiding Saylor’s Strategy
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
- Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
