BTC ETFs See $731M in Record Inflows Since January as Bitcoin Surges Past $80K
Thursday witnessed $730.9 million flowing into US Bitcoin ETFs while Bitcoin crossed back above $80,000, although CryptoQuant warned of limited new demand and highlighted a critical $83,000 resistance level.
Exchange-traded funds tracking Bitcoin in the United States posted their strongest inflows in close to eight months as the cryptocurrency regained the $80,000 price milestone.
On Thursday, Bitcoin ETFs saw net inflows totaling $730.9 million, representing the most significant single-day accumulation since Jan. 14, when these investment vehicles pulled in $843.6 million, based on data from SoSoValue.
This substantial influx came after Wednesday's $101.2 million in inflows and occurred as Bitcoin pushed back above the $80,000 threshold following a week of price action confined between approximately $76,000 and $81,000, per CoinGecko data.
However, despite the notable jump in ETF inflows, analytics firm CryptoQuant maintained a measured outlook on Bitcoin's upward momentum, pointing to diminished spot market demand and significant short position liquidations as the cryptocurrency approaches $83,000, identified as a critical bull market benchmark.
BlackRock's IBIT attracts $454 million in single session
The iShares Bitcoin Trust (IBIT) from BlackRock, which stands as the largest US spot Bitcoin ETF measured by net assets, dominated Thursday's capital inflows with $454 million, representing approximately 62% of the aggregate total, based on information from Farside Investors.
Although the combined spot Bitcoin ETF inflows hit their peak since January, IBIT individually attracted an even larger $503 million inflow on Aug. 20, just days earlier.
The ARK 21Shares Bitcoin ETF (ARKB) from ARK Invest and 21Shares came in second with $137.7 million in inflows, while the Wise Origin Bitcoin Fund (FBTC) from Fidelity captured $74.4 million.
Thursday saw only two funds experiencing outflows: VanEck's Bitcoin ETF (HODL) with $19.6 million in withdrawals and WisdomTree's Bitcoin Fund (BTCW) with $5.2 million in redemptions.
Bitcoin price surge requires additional buyer participation
The recent upward movement in Bitcoin's price stemmed primarily from short-position closures among traders rather than the establishment of new long positions, suggesting constrained fresh purchasing activity, according to a Thursday analysis from CryptoQuant provided to Cointelegraph.
CryptoQuant's analysis highlighted that Bitcoin investors locked in net profits of 23,000 BTC on Aug. 21, marking the largest single-day profit realization of the year, with approximately 110,000 BTC in total profits taken since Aug. 19, indicating considerable selling pressure during the recent price appreciation.
The analytics firm identified Bitcoin's next significant resistance level near its 365-day moving average, which CryptoQuant estimated at approximately $82,300.
CryptoQuant noted that this moving average has served as a historical boundary separating Bitcoin bull markets from bear markets, with the cryptocurrency touching $81,400 on Aug. 28 before falling back beneath this critical level.
"A decisive close above $83K would confirm the new bull market,"according to CryptoQuant's assessment, whereas failure to break through this resistance could result in a price correction down toward the 200-day moving average positioned near $69,000.