By
Chimamanda U. Martha
April 26th, 2024
Spot BTC ETFs enjoy bullish momentum based on consecutive cumulative net inflows despite BTC’s short-term pullback after the US Fed’s rate decision.
The crypto market posted mixed signals as it steps into the second month of Q1. Notably, spot Bitcoin ETFs (Exchange-Traded Funds) recorded cumulative net inflows since Friday, January 26. Not even the US Fed’s hawkish stance on 31 January dulled the spot BTC ETF’s bullish spree.
On January 31, 2024, spot BTC ETFs recorded $197 million in net inflows, marking the third bullish day for spot BTC ETFs this week. Most interestingly, Fidelity and BlackRock scaled accumulation spree as both crossed $2 billion in AUM (assets under management).
That translated to over 55k BTC holding for each issuer. It meant that short-term bearish pressure against BTC was subsidizing. According to Akham Intelligence’s data, Fidelity held 57.7K BTC. In comparison, BlackRock’s BTC war chest stood at 57.4K BTC as of 1 February early morning before the opening of the New York trading session.
Interestingly, on January 31, Fidelity’s FBTC recorded $232 million of inflows against BlackRock’s IBIT of $116 million, as per WhalePanda.
Yesterday's #Bitcoin ETF flows (data by @FarsideUK) show a net inflow of $197 million.
Monday's flows have been adjusted to $135 million, it was $250 million first but Fidelity got adjusted.
Still a very solid positive week. Price is down now mostly because of FOMC yesterday… pic.twitter.com/lBm3PJJq0W
— WhalePanda (@WhalePanda) February 1, 2024
BTC Flashes Red after the US Fed’s Rate Decision
Despite the impressive net inflows from spot BTC ETFs, BTC has been in the red since Tuesday (January 30). The US Federal Reserve’s move to keep Fed interest rates unchanged, embellished with hawkish undertones, unnerved investors.
As such, BTC dropped further on January 31, following the Fed’s hawkish tone, from a high of $43.7k and was barely holding on to the $42k price level as of press time. There was liquidity on the BTC/USDT daily chart between $40.3k and $41.3k. Should $42k fail to hold, BTC could drop to collect the liquidity in the above zone.
However, the Relative Strength Index on the BTC/USDT daily chart, which tracks the strengths of buyers and sellers, was at 49, denoting market equilibrium. It meant the price could go either way – up or down.
Nevertheless, any extended correction could present another round of discounted BTC prices. Like the massive accumulation seen after BTC slipped below $40k, the spot BTC ETFs could go for another accumulation phase if BTC drops lower.
