The sideways trend has been broken, Bitcoin is marching again. Within 24 hours, BTC climbed by 3 percent to over 71,000 US dollars (USD). The all-time high of 73,737 USD is now only a few percentage points away. What will happen to the cryptocurrency’s price?
It is safe to say that sentiment has found its way back into the market. This is demonstrated above all by a look at the capital inflows into Bitcoin ETFs. Yesterday, Tuesday, June 4, a total of 887 million US dollars flowed into the index funds of BlackRock, Fidelity and Co. – this is the second largest value ever measured since their genesis in January of this year.
The ETF winner of the day is Fidelity’s FBTC, which is the third-largest BTC index fund and recorded net inflows of 378.7 million US dollars. In total, the Fidelity ETF holds according to Dune already around 165,000 Bitcoin. The constant demand for BTC fund products on the traditional financial market is likely to be primarily responsible for the top performance of digital gold. After all, net capital has been flowing into the ETFs for 16 days in a row.
And: With 853,000 BTC with a total value of 13 billion USD, 4.3 percent of the entire Bitcoin supply is now in the wallets of the ETF sponsors. It remains to be emphasized: The Bitcoin ETFs are the most successful index funds in stock market history.
Miners continue to liquidate their BTC
But why did Bitcoin initially go downhill after the halving? In fact, the halving of the block subsidy put the miners under pressure. As data from Glassnode show, the miners recently had to liquidate parts of their BTC holdings.
The liquidations have logically created a certain selling pressure on the market – and could have pushed the price down accordingly. The question now is whether the sales are about to end. If that is the case, the BTC supply on the market could become scarce again. That would be bullish.
André Dragosch of the ETC Group, however, believes on LinkedInthat Bitcoin liquidations by miners could continue for a while:
Miner capitulation and increased coin liquidation are definitely a risk given the lower mining revenue.
If the wave of liquidations continues, the all-time high could still be shaken.
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