‘Sustained’ Bitcoin ETF Earnings Could Be ‘Pricey’ Despite Declining Spot Buying
According to Bitfinex analysts, a multi-day spot bitcoin (BTC) exchange-traded fund flow is starting to form.
On September 23, Bitfinex analysts predicted a short-term price consolidation due to reduced Bitcoin buying on crypto exchanges, writing in a September 23 report that “Continued ETF inflows could buy BTC prices.”
“With the slowdown in Bitcoin spot market buying, with spot aggregate volume delta plateauing at $63,500, we already see BTC moving in the near term,” the analysts explained.
Spot Bitcoin ETFs form a positive trend in the hidden month
On September 24, the Spot Bitcoin ETF saw $136 million in cumulative inflows, marking four days of positive inflows, according to Farside data. This comes in what is usually a bearish month for Bitcoin traders.
Spot Bitcoin ETFs have seen a total of $17.84 billion in inflows since their launch in January. Source: Farside
CoinGlass data shows that September was the worst month for Bitcoin, with the asset posting an average monthly loss of 4.49% over the past 11 years.
At the time of publication, Bitcoin's price is up approximately 6.26% since September 18, trading at $63,713, according to TradingView data.
Bitcoin has gained 6.26% in the past seven days. Source: TradingView
Meanwhile, Bitcoin dominance — which represents Bitcoin's share of the total crypto market capitalization — has fallen 1.35% since September 18, now reaching 57.62%, according to TradingView data.
Bitfinex analysts suggested that Bitcoin could see “further upside” if ETF flows remain positive, adding that “traditional financial markets such as the S&P 500 continue to rally.”
Price consolidation will not increase the demand for space
However, if spot-buying interest does not return, Bitcoin price will “surprisingly” strengthen or see a “partial correction” without “permanent spot-buying”.
Related: BlackRock Bitcoin ETF Requests 12-Hour BTC Withdrawal from Coinbase
There is general consensus in the industry that the US election in November will play a significant role in Bitcoin's future price direction.
However, some industry leaders expect Bitcoin to reach six figures in the next twelve months, regardless of the outcome.
On September 20, Cointelegraph reported that Geoff Kendrick, global head of digital assets research at Standard Chartered Cross-Border Bank, believes Bitcoin will reach $200,000 by the end of 2025, regardless of who wins the 2024 US presidential election.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
