Bitcoin Surges Past $64k: ETF Inflows Accelerate, Bull Run is On?

TLDR:

Bitcoin price reached $64,082, up 3% in 24 hours
US spot Bitcoin ETFs saw $158 million net inflow on Thursday
Total crypto market cap increased 2% to $2.3 trillion
Bitcoin supply on exchanges decreased by 97.6k coins in 30 days
Analysts see potential for Bitcoin to break $65k resistance soon

Bitcoin, the world’s leading cryptocurrency, has surged past the $64,000 mark, reaching a high of $64,082 in the past 24 hours. This 3% increase comes as US spot Bitcoin ETFs continue to see significant inflows, with Thursday alone bringing in $158 million in net cash.

The total crypto market capitalization has also risen by 2%, now hovering around $2.3 trillion.

The recent price movement has been fueled by several factors, including strong institutional demand and decreasing supply on centralized exchanges.

Over the past 30 days, the supply of Bitcoin on exchanges has dropped by more than 97,600 coins, led by major players like Coinbase Pro and Binance. This reduction in available supply on exchanges is often seen as a bullish indicator, as it suggests that more investors are moving their Bitcoin into long-term storage.

US spot Bitcoin ETFs have been a major driver of this trend, with total net assets under management now reaching an impressive $57.8 billion.

On Thursday, all spot BTC ETF issuers reported positive net cash inflows, with Fidelity’s FBTC and ARK 21Shares Bitcoin ETF (ARKB) leading the pack. This consistent influx of capital into Bitcoin-based investment products demonstrates growing confidence in the cryptocurrency among institutional and retail investors alike.

The broader cryptocurrency market is also showing signs of recovery, with Ethereum (ETH) and Solana (SOL) leading the altcoin rally. This suggests that the bullish sentiment is not limited to Bitcoin alone, but is spreading throughout the entire crypto ecosystem.

From a technical analysis perspective, Bitcoin is approaching a crucial resistance level around $64,000.

Some analysts, like Ali Martinez, believe that a sustained close above the 200-day Moving Average could confirm a bullish continuation towards new all-time highs. The recent “death cross” between the 50-day and 200-day Moving Averages adds an element of caution, but many traders remain optimistic about Bitcoin’s near-term prospects.

On the #Bitcoin daily chart, the RSI has broken through a key resistance trendline, signaling a bullish breakout!

However, $BTC still needs to reclaim the 200-day moving average as support to confirm the continuation of the bull run. pic.twitter.com/d6n6j6jH0l

— Ali (@ali_charts) September 19, 2024

The macroeconomic environment also appears to be favoring Bitcoin’s growth. The Federal Reserve’s recent rate cut signals have been interpreted as the beginning of an economic shift, potentially creating a more favorable climate for risk assets like cryptocurrencies.

Many in the crypto industry are anticipating a further bullish rebound in October and the months that follow.

Institutional adoption continues to play a significant role in Bitcoin’s current rally. The involvement of major financial players like BlackRock and Fidelity has lent credibility to Bitcoin as a legitimate asset class.

BlackRock’s Bitcoin ETF, in particular, has become the fastest-growing ETF in history, underscoring the strong demand for Bitcoin exposure among traditional investors.

Looking ahead, some analysts are projecting ambitious price targets for Bitcoin. George from CryptosRUs, for instance, believes that Bitcoin could reach between $250,000 and $300,000 by 2025. While these predictions should be taken with caution, they reflect the growing optimism surrounding Bitcoin’s long-term potential.

As Bitcoin approaches the $65,000 resistance level, eyes are on whether it can break through and potentially challenge its previous all-time high.

The combination of strong ETF inflows, decreasing exchange supply, and growing institutional interest suggests that Bitcoin may have the momentum to test these higher levels in the near future.