Buy ETFs and Whales Bitcoin: Is This the Bottom?
After weeks of turmoil, there are signs that Bitcoin may be approaching a critical inflection point.
US-listed Bitcoin exchange-traded funds (ETFs) posted net inflows of $28.7 million on September 9, a reversal of $1.2 billion after a long period of outflows. This was the first net gain since late August, coinciding with a 6% rebound in the price of Bitcoin.
Bitcoin buy orders are filled, local down signal
The renewed income streams suggest growing interest among professional investors. While ETFs have been suffering since August 27, a reversal in earnings could be an early sign of a reversal in sentiment. September is typically bearish for Bitcoin, but this surge in ETF demand provides a potential tipping point.
After 8 days of heavy outflows, the net flow turned positive. Yesterday's only outflows were from the 2 largest US Bitcoin ETFs, Greyscale (GBTC) and BlackRock (IBIT), SpotOnChain analysts said.
Meanwhile, a popular whale on Bitfinex is aggressively buying Bitcoin, collecting around 450 BTC daily. The move comes as Bitcoin's price hovers below $60,000, a level at which the whale appears to be confident in the asset's long-term potential.
Accumulation patterns on Bitfinex, where these trades are conducted, show a clear dominance in the order book, which shows a strong belief in the resilience of Bitcoin.
At the same time, long-term holders (LTH) are increasing their Bitcoin positions. Data shows a net increase in LTH positions, historically a bullish sign. When long-term investors accumulate, it often shows confidence in the future growth potential of cryptocurrency.
The stability provided by LTH stock may set the stage for Bitcoin's price to peg and recover.
Even as buying pressure mounts, analysts at Bernstein and veteran trader Peter Brandt are cautious. Brandt sees a 65% chance that Bitcoin will drop below $40,000 before hitting new highs. Brandt's technical analysis puts the probability of Bitcoin hitting $80,000 by September 2025 at 20% and rising to $130,000 by September 2025 at 15%.
Meanwhile, Bernstein analyst Gautam Chugani said that whether Donald Trump or Kamala Harris wins, the outcome of the election could significantly affect the future course of Bitcoin.
“We expect the delta between the two political outcomes to be wide. With a Trump win and Q4, we expect Bitcoin to reach the $80,000-$90,000 range. However, if Harris wins, we expect Bitcoin to break the current floor around $50,000 and test the $30,000-$40,000 range.” Chugani explained.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
As ETFs, whales, and LTHs continue to pile up, the market will be watching closely for signs that Bitcoin may be near the bottom. For now, uncertainty remains, but increasing buying pressure suggests optimism is building.
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