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Bitcoin ETFs recently crossed the $20 billion capitalization mark in the United States, and this momentum shows no signs of slowing down. From one continent to another, investors flock to these financial instruments, attracted by the promise of quick profits. Europe was not left out, with more than $105 billion invested in Bitcoin ETFs in 2024, a record. But then why is the price of BTC trying to break the symbolic threshold of $70,000?
Bitcoin ETFs: Record Traffic But Lower Impact
European investors came over $105 billion in Bitcoin ETFs in the United States broke all previous records this year. This wave of investment is not just European; Asian flows are also clearly increasing.
Despite this enthusiasm, the price of Bitcoin has remained below $70,000 since July.
This was noted by Bloomberg analyst Eric Balchunas these massive inflows do not have the immediate expected effect on the marketdue to the use of ETFs as “liquidity exits” by some traders.
- About 75% of new capital inflows contributed to exceeding $50,000 in February 2024;
- Bitcoin ETFs now hold over $66.3 billion in BTC on the blockchain;
- The computing power of the Bitcoin network, or hashrate, reached an all-time high on October 21st.
BTC price stagnates despite records
Bitcoin price, while boosted by ETF flows, failed to break through glass ceiling $69,500the last signal of an imminent explosion. This situation persists despite six consecutive days of positive net flows in ETF s a peak purchase of $555 million on October 14which caused only a temporary increase of 5%.
According to analysts at Bitfinex, the delay in the impact of ETF flows is explained order of market transactions. Initial strong demand is often followed by a correction when momentum runs out.
Thus, market participants should remain cautious as the rise of Bitcoin ETFs could soon dictate market flows. Heavyweights like BlackRock and Grayscale certainly haven’t had their last word.
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The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.
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