Despite the rising demand from institutional investors, Bitcoin price has suffered midterm bearish sentiment, with some analysts predicting a dip below $50K soon.
After steady economic growth as showcased by economic data, the Federal Reserve now have the basis to cut interest rate
The rally in the gold price recently could signal potentially favorable macroeconomic conditions for Bitcoin in the near future following the liquidity infusion from central banks.
Thursday’s inflows represent a sharp turnaround from the previous day’s negative trends across Bitcoin ETFs. Investors appear to be capitalizing on Bitcoin’s price stability around $58,000.
The possibility of the US Fed cutting its benchmark interest rate next week has increased, thus rejuvenating bullish sentiments for Bitcoin and the entire altcoin industry.
Ark Invest and 21Shares’ ARKB led the outflows after $54.03 million left the product yesterday.
Despite the choppy Bitcoin market, BTC miners have continued to install new ASIC hardware, thus pushing the hashrate higher in the recent past.
Despite the recent outflows, Bitcoin ETFs continue to dominate the ETF market.
Nick Forster, founder of Derive, outlines three crucial factors for Ether to break its all-time high: Trump’s victory in the 2024 U.S. election, aggressive Federal Reserve rate cuts, and a rise in global liquidity.
Fear of further Bitcoin price capitulation in the short term significantly increased amid continued sell-offs from whale investors.
Bitwise’s BITB registered a net cash inflow of over $9 million on Wednesday, signaling rising confidence for Bitcoin among institutional investors.
This massive exodus of capital suggests that investors are gradually withdrawing from the ecosystem. It also coincides with Bitcoin’s struggles to find a support level.
Bitcoin price is not yet out of the woods as investors speculate on midterm economic uncertainties in the United States.
Last week’s overall outflows were largely driven by two funds. Those are Ark Invest/21Shares’ Bitcoin fund (ARKB) and Grayscale’s Bitcoin ETF (GBTC).
The US spot Bitcoin ETF issuers have registered four consecutive days of notable cash outflow leading to a bearish outlook for the entire altcoin industry.