Bitcoin Breaks Out As ETF Inflows Explode
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Record ETF Inflows
Bitcoin prices soared higher yesterday with the futures market breaking out above the $83,385 level which has capped the market since February. The move was accompanied by a record surge in ETF demand with industry data reflecting net-inflows of just under $1 billion. This marks the largest daily inflow volume in 11-months and is a strong signal that further gains are expected. BlackRock’s IBIT was the largest draw taking in $381 million on Monday.
Bullish Risk Sentiment
In terms of the driver behind the move, the rally appears linked to the broader risk on tone we’re seeing to markets amidst the decline in energy prices and rising optimism around a potential end to the US Iran war. Indeed, the move higher comes despite the rally in USD and hawkish Fed expectations, suggesting that (for now, at least) BTC is less impacted by Fed drivers, or perhaps the longer-run view that declining oil prices will reduce the need for Fed tightening. Looking ahead, any positive news around Trump and Xi’s meeting in New York today should help drive the rally further.
Technical Views
BTC
The rally in Bitcoin has seen the market breaking out above the $83,385 level and the May and August highs. With momentum studies turned bullish now, focus is on a continuation higher while price holds above that level with $94,730 the next target for bulls.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.