Since the launch of Bitcoin spot ETF trading last month, the market’s enthusiasm for Bitcoin has been reignited. According to Coinglass data, the open interest in the Bitcoin futures market has approached the record high of the bull market in 2021, exceeding $21 billion. Analysts predict that the successful launch of the ETF and the FOMO sentiment it has triggered will drive Bitcoin to new highs.
Bitcoin Spot ETF Inflows Continue to Increase
ETF Ignites Bitcoin FOMO Sentiment
Bitcoin Open Interest Approaches 2021 Bull Market High
Since the launch of the Bitcoin spot ETF on November 11th, Bitcoin has once again become a popular product in the market. According to statistics from Lookonchain, as of yesterday, Bitcoin spot ETFs have attracted a total inflow of 71,584 BTC. And today, around 5:00 p.m., the spot price rose above $51,000 again.
In particular, on November 13th, US Bitcoin ETFs increased by 10,926 BTC, marking the fifth consecutive day of capital inflows. In addition to GBTC, the other eight ETFs collectively added 12,073 BTC (worth about $590 million), while GBTC reduced its holdings by 1,147 BTC (worth about $56 million). The scale of capital outflow has significantly decreased since January 22nd.
Among the major Bitcoin ETFs, iShares (BlackRock Bitcoin ETF) and Fidelity increased their holdings by 7,497 BTC (worth about $366.5 million) and 3,039 BTC (worth about $148.5 million) respectively.
The successful launch of Bitcoin ETFs and the recent continuous capital inflows have attracted optimistic expectations from Wall Street giant AllianceBernstein regarding the future price of Bitcoin. According to COINTURK’s report, analysts Gautam Chhugani and Mahika Sapra from AllianceBernstein believe that the launch of Bitcoin ETFs and the FOMO sentiment it has triggered will drive Bitcoin to reach new highs.
Chhugani and Sapra said that although the current interest in Bitcoin has not reached the peak of enthusiasm observed in 2017 and 2021, Bitcoin ETFs have become an important catalyst for driving the price of Bitcoin upward because investors who are cautious about Bitcoin can invest in Bitcoin through this product. They pointed out that in the past two trading days, the new ETFs have attracted nearly $1 billion in capital inflows, while the capital outflow of GBTC has significantly decreased to about $50 million.
They also stated that as the price of Bitcoin approaches $50,000, buyers from the bull market in 2021 will soon reach a breakeven point, which is a milestone they have witnessed for the first time in nearly three years and is seen as a bullish signal for the market’s future.
In addition to the Bitcoin price returning to the level of the bull market in 2021, the “open interest” of Bitcoin futures is also approaching the high point recorded in mid-November of that year when the Bitcoin price soared to $65,000. CoinGlass data shows that the nominal value of open interest in the Bitcoin futures market has reached the highest level in 26 months.
Since the beginning of this year, the open interest of perpetual contracts and futures contracts has increased by 22%, exceeding $21 billion before the deadline, approaching the record of $24 billion set when the Bitcoin price reached its peak of $65,000 in 2021.
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