bitcoin is up 2.9% in the last 24 hours, reaching a high of $71,166 on Binance today, marking the highest price since May 21. This rally appears to be primarily driven by strong inflows into US spot bitcoin ETFs, with the sector experiencing its 16th. consecutive day of net inflows.
Yesterday alone, these ETFs recorded an inflow of $886.6 million, with Fidelity leading the way with $378.7 million, setting a new record for the fund. BlackRock was not far behind, with significant inflows totaling $274.4 million. Other major contributions included Ark with $138.7 million, Bitwise with $61 million, and Grayscale bitcoin and VanEck bitcoin Trust with $28.2 million and $4 million respectively.
Sustained interest is further evidenced when BlackRock's iShares bitcoin ETF surpassed $20 billion in assets, becoming the fastest ETF to reach this milestone, reflecting significant momentum and investor enthusiasm.
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Bloomberg ETF analyst Eric Balchunas highlighted the magnitude of these inflows, x.com/EricBalchunas/status/1798156058487382232″ target=”_blank” rel=”nofollow”>indicating, “Loyalty does not mess around, today there are great flows for The Ten, almost a billion dollars in total. Second best day since mid-March. $3.3 billion in the last 4 weeks, net year to date at $15 billion (which was the high end of our trailing 12-month estimate). The 'third wave' is becoming a tidal wave.”
Despite the positive inflow dynamics, Byzantine General (@ByzGeneral), a leading crypto analyst, noted that the price increase could have been steeper. He highlighted the presence of substantial passive supply on spot exchanges, which could have moderated the price rise.
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Yesterday he noted: “Today there is a high volume and the criminal base actually went down a little bit. I think we have good ETF flows today, but… they are buying a lot of passive supply on the spot exchanges.” He further commented today: “What did I say? Big ETF inflows. But because of all the passive supply, It is like an unstoppable force colliding with an immovable object.”
Additionally, it is important to note that the price increase was not driven by the liquidation of short positions in the btc futures market, where only $27.58 million in shorts were liquidated in the last 24 hours, according to Coinglass data.
However, Willy Woo, a renowned on-chain analyst, warned that a continued rise could trigger a significant short squeeze. Court x.com/woonomic/status/1798169693771194825″ target=”_blank” rel=”nofollow”>saying via x, “Touching 72k is the fuse that is ready to start a liquidation cascade. “$1.5 billion in short positions ready to be liquidated to $75,000 and a new all-time high.”
