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Bitcoin price fell below $82,000 on October 22 despite renewed U.S. spot exchange-traded fund demand. The funds attracted approximately $1.08 billion across three sessions ending October 21, according to SoSoValue-based figures.
Spot Bitcoin ETF Inflows are Soaring This Week
American retail and institutional investors are rotating to Bitcoin aggressively this week. SoSoValue data shows that these funds added $528 million in assets on Wednesday, the best single day increase in over a month. This increase happened mostly on BlackRock’s IBIT, Fidelity’s FBTC, Grayscale’s GBTC, and Bitwise’s BITB.
Spot Bitcoin ETFs added $23 million on Tuesday, and a whopping $526 million on Monday. As a result, they have turned the monthly flows from negative to positive $460 million. If the month ends like this, it will be the fourth consecutive month that these funds have had positive flows. They added $2.65 billion last month and $3.52 billion in August.
The ongoing ETF inflows happened after JPMorgan Asset Management delivered a bold Bitcoin prediction. In a report this week, the bank’s analysts predicted that Bitcoin will outperform stocks, bonds, and even gold in the long term. They anticipate that it will have an annualized growth rate of about 10% in the long term. However, they warned that its volatility may hinder people from investing in the coin.
Bitcoin is also bracing for more buying from Strive, which has now become one of the biggest holders. It has accumulated 36,818 coins, and the company raised over $600 million this week to buy Bitcoin. It did that by launching the IPO of SATS.
Risk-On Sentiment Prevailed
Bitcoin ETF inflows also happened as investors embraced a risk-on sentiment after the strong SpaceX earnings. In a statement, the company said that its revenue more than doubled last quarter and that it turned a profit in this period. Most notably, the company floated deliberations to merge SpaceX with Tesla, a significant move since the two companies hold over 30.2k Bitcoins.
SpaceX’s earnings report reignited animal spirits in the stock market, with the Dow Jones, Nasdaq 100, and S&P 500 indices continuing their rally. It also coincided with the falling bond yields and crude oil prices.
The risk, however, is that a reversal is happening across the assets today. Futures tied to the Dow Jones dropped by 225 points, while those linked to the S&P 500 fell by 60 points. Crude oil prices are rising, with Brent and West Texas Intermediate (WTI) reaching $111.60 and $100, respectively. If this continues, there is a risk that Bitcoin ETF inflows will remain under pressure.
Bitcoin Price Prediction: Technical Analysis
The daily chart shows that the Bitcoin price has remained in a tight range this month. It has jumped above the upper side of the falling wedge pattern, which is comprised of two descending and converging trendlines. This pattern normally leads to a strong bullish breakout over time.
The coin has remained above the 50-day and 100-day moving averages, a sign that bulls have prevailed for now. It is also above the Supertrend indicator, which is usually a bullish sign.
Therefore, the price will likely have a strong bullish breakout in the near term. If this happens, the next important target to watch will be at $87,254. A surge above that level will point to more gains towards $90,000 followed by $100,000.
This article is for informational purposes only and does not constitute financial advice. Bitcoin prices are volatile, and investors can lose capital. Readers should conduct independent research before making investment decisions.
