Institutional investors are doubling down on bitcoin, with investment funds related to the flagship crypto posting huge bitcoin-over-1b-inflows-fuel-etf-rally/” rel=”nofollow”>tickets last week. This development indicates bullish sentiment among these investors that could trigger a bitcoin rally to $80,000.
bitcoin investment funds record $942 million in inflows
According to the latest CoinShares weekly report, bitcoin investment products recorded a net inflow of $942 million. These inflows are said to have been “an immediate response to Wednesday's lower-than-expected CPI report,” with 89% of the total flows occurring in the final three trading days of last week.
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He bitcoin–crypto-see-unexpected-boost/” rel=”nofollow”>Consumer Price Index (CPI) The lower-than-expected inflation data is believed to have restored investor confidence in the market. The data showed that inflation in the US may be slowing, raising the outlook for bitcoin-dip-federal-reserve-turns-dovish/” rel=”nofollow”>Federal Reserve cutting interest rates. Lower interest rates are good for the cryptocurrency market as they will make investors more willing to invest in bitcoin-behaves-like-risk-asset-during-evergrande-mayhem/” rel=”nofollow”>risk assets like bitcoin.
The United States accounted for the majority of inflows into btc, with $1 billion flowing into bitcoin-etfs-approved-by-us-sec/” rel=”nofollow”>US Spot bitcoin ETF last week. bitcoin-etf/” rel=”nofollow”>Grayscale bitcoin Trust (GBTC)which has recorded more than $16 billion in outflows since the ETF's approval in January, also recorded inflows (for the first time) of $18 million last week.
This trend of significant inflows into these spot bitcoin ETFs is likely to continue this week. Farside Investors Revealed in an x (formerly twitter) x.com/FarsideUK/status/1792763201391636911″ rel=”nofollow”>mail that these funds recorded a net inflow of $237.2 million on May 20. Interestingly, none of these bitcoin spot ETFs recorded outflows that day, with GBTC recording an inflow of $9.3 million.
It's also worth noting that while btc saw inflows of $942 million, there were almost no flows into shorting bitcoin, and CoinShares noted that this implies a positive outlook among investors. Altcoins such as Solana, Chainlink, and Cardano also recorded considerable inflows, with $4.9 million, $3.7 million, and $1.9 million flowing into these crypto tokens, respectively.
btc bull run could return
With the bitcoin-etfs/” rel=”nofollow”>bitcoin Spot ETF Seeing again impressive demand and recording significant inflows, there is a feeling that the bitcoin bull run could be in full force. These investment funds were known to have contributed significantly to the flagship cryptocurrencies reaching a bitcoin-breaks-through-69000-setting-new-record/'” rel=”nofollow”>new all-time high (ATH) of $73,750 in March.
Therefore, these funds could be returned to provoke another rally for bitcoin, sending it to $80,000 and up. Besides bitcoin Spot ETFs, other factors are contributing to a bullish continuation of btc. one is the bitcoin-and-crypto-macro-data-to-watch-this-week/” rel=”nofollow”>macroeconomic datawhich shows that the economic situation in the US could be improving.
Meanwhile, from a technical analysis perspective, the worst is looking for bitcoin with crypto analyst Rekt Capital. bitcoin-price-left-danger-zone/” rel=”nofollow”>developer that the crypto token has left the post-halving danger zone.
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