Bitcoin’s price has risen by 2.9% within the last 24 hour, hitting a new high on Binance of $71,166, which is the highest level since May 21, 2017. The main driver of this rally is the robust flow into US Bitcoin ETFs. This sector has experienced 16 consecutive days of net inflows.
Why is the Bitcoin price up today?
Yesterday alone, these ETFs saw an inflow of $886.6 million, with Fidelity leading at $378.7 million—setting a new record for the fund. BlackRock He was not far behind with $274.4 inflows. Ark contributed $138.7 millions, Bitwise $61 million and Grayscale Bitcoin Trust $28.2 and $4 respectively.
Hello fellow hodlers!
Yesterday, we had a day filled with inflows of $886.6 Million (about 12 500 BTC).
Fidelity’s revenue was $378.7 Million, Blackrock’s $274.4 millions, Ark’s $138.7 and Bitwise’s 61.
You can also read about it here $GBTC had inflows worth of $28.2… pic.twitter.com/KaDdmTrq9p
— WhalePanda (@WhalePanda) June 5, 2024
BlackRock’s iShares Bitcoin ETF has exceeded $20 billion assets and is the fastest ETF in history to do so, demonstrating investor momentum.
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Eric Balchunas is a Bloomberg ETF Analyst who highlighted the size of this inflow. stating, “Fidelity not messing around, big-time flows all around today for The Ten, nearly $1b in total. Second best day ever, since Mid-March. $3.3b in past 4wks, net YTD at $15b (which was top end of our 12mo est). The ‘third wave’ is turning into a tidal wave.”
Byzantine general (@ByzGeneral), one of the most prominent cryptocurrency analysts, said that the surge in price could have had a greater impact despite positive flow dynamics. He highlighted substantial passive supply On spot exchanges which could have moderated the price rise.
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Yesterday, he noted that “High volume today, and the perps basis actually went down a bit. I think that we got good ETF flows today, but… They’re buying into a lot of passive supply on spot exchanges.” Today, he added to his comments. “What did I say, big ETF inflows. But because of all of the passive supply it’s like an unstoppable force colliding with an immovable object.”
Moreover, the increase in price was not driven by liquidation of short positions Coinglass data shows that only $27.58 millions in BTC shorts were liquidated over the past 24 hours.
Willy Woo warned, however, that the continued increase could lead to a short squeeze. Woo said Via X “Tapping 72k is the fuse that’s set to start a liquidation cascade. $1.5b of short positions ready to be liquidated all the way up to $75k and a new all time high.”
![Bitcoin Liquidation Heatmap](https://fxruhanahmed.com/2/wp-content/uploads/2024/06/Bitcoin-Price-Soars-Past-71000-Heres-Why.jpg)
BTC is currently trading for $71,075.
![Bitcoin price](https://fxruhanahmed.com/2/wp-content/uploads/2024/06/1717574120_666_Bitcoin-Price-Soars-Past-71000-Heres-Why.png)
Featured image created with DALL·E, chart from TradingView.com
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Source: www.newsbtc.com