In a significant shift, Bitcoin (BTC) spot exchange-traded funds (ETFs) listed in the U.S. recorded net inflows of just over $28.7 million on Monday, marking the end of an unprecedented streak of outflows totaling $1.2 billion. This surge in inflows is noteworthy given the recent bearish sentiment surrounding the cryptocurrency, particularly as outflows from these ETFs often indicate a waning interest from professional investors.
The positive inflows come after a period of losses for Bitcoin ETFs, which have been experiencing a rough patch since August 27. Monday’s uptick in inflows is the first sign of recovery in September, a month historically associated with declines in Bitcoin’s price. Despite these outflows, the net inflows since the ETFs' inception have fallen below the $17 billion mark, reverting to levels not seen since July.
Currently, Bitcoin prices have plummeted nearly 15% in the past two weeks and are trading approximately 25% below the all-time high of $73,300 reached in March. Despite the price drop, some traders remain optimistic about Bitcoin’s future.
QCP Capital, in a recent Telegram broadcast, maintained a bullish stance on the cryptocurrency. "Even with all the near-term noise and volatile price action, we remain structurally bullish," the traders stated. They noted that the recent price dip could present a buying opportunity for longer-term investments, particularly as some institutions seem to be increasing their bullish positions for December and March.
The bounce in Bitcoin's price from the $52,500 level has been seen as a positive sign, though it is still uncertain whether this marks the market bottom. "Although we can't be certain, some institutions seem to think so as they take this opportunity to add to their bullish bets," the traders added.
In other crypto news, the CoinDesk 20 (CD20), which tracks the largest and most liquid digital assets, has seen a 2.3% increase, now trading at 1,800. Bitcoin itself is trading just above $56,500, having recently slipped from $57,000. Market participants are closely watching upcoming economic data releases, including the Consumer Price Index (CPI) and Producer Price Index (PPI), as well as the first debate between Donald Trump and Kamala Harris.
Polymarket traders currently see minimal chances of cryptocurrency being discussed during the debate, with only an 11% probability of Harris mentioning Bitcoin and a 13% chance for Trump. Furthermore, traders are anticipating that the debate may run over its scheduled time, with only a 30% likelihood of it concluding on time at 10:30 PM.
In the realm of other cryptocurrencies, AI tokens have performed strongly, with the CoinGecko AI category rising by 10% during the first half of Asia’s trading session. Liquid staking tokens are also showing positive movement, with Lido DAO’s (LDO) token up 6.3%. Meanwhile, Rocket Pool’s RPL token has surged over 20%, buoyed by Binance Futures' introduction of leveraged perpetual contracts. Despite this rise, DeFi Llama data indicates that RPL’s total value locked remains relatively stable, just above $2.9 billion.
Overall, while Bitcoin and other cryptocurrencies face significant volatility and market uncertainty, recent developments suggest a potential rebound and increased institutional interest in the space.
September 2024, Cryptoniteuae