Spot Bitcoin ETF Trading Volume Surpasses $3 Billion Amid Price Surge
As Bitcoin (BTC) approaches its all-time high of $73,700 from March, the US spot Bitcoin ETF market has become a significant factor in its recent price increase.
Total trading volume for spot Bitcoin ETFs exceeded $3 billion on Tuesday, coinciding with Bitcoin's price briefly surpassing $73,000 for the first time in over seven months.
Bitcoin ETF Market Set To Surpass 1 Million BTC Holdings Soon
Investor BigRig reported a notable increase in Bitcoin ETF purchases, with $2.673 billion in inflows since October 16. This represents 11.8% of total ETF inflows during this timeframe, indicating strong interest from institutional and retail investors. BigRig noted that this period marked the best day for ETF inflows prior to Tuesday’s trading volume.
Bloomberg ETF analyst Eric Balchunas stated that US spot ETFs are projected to hold 1 million Bitcoin by next Wednesday, surpassing Satoshi Nakamoto's holdings by mid-December, with an average addition of about 17,000 BTC per week. He cautioned that market volatility could affect these projections, mentioning the risk of a sudden selloff.
If prices continue to rise and political factors, such as a potential Trump victory, enhance market enthusiasm, the influx of new investors could accelerate Bitcoin's ascent to new highs.
Whale Accumulation Spurs Optimism
Despite increased ETF activity, Bitcoin's price recently declined to approximately $72,250. However, positive indicators exist for Bitcoin bulls, as the cryptocurrency has been consolidating above key support levels around $66,000, preventing significant declines and contributing to the rally. A sustained consolidation above $70,000 would be a bullish sign.
Market expert Miles Deutscher highlighted a trend of whales accumulating Bitcoin at an unprecedented pace, suggesting institutional demand is currently outpacing retail interest, which may lead to significant price increases. Additionally, Bitcoin exchange reserves have reached all-time lows, indicating a supply squeeze.
Featured image from DALL-E, chart from TradingView.com