Crypto market surges: Bitcoin ETF inflows reached $870 million

On Tuesday, Bitcoin ETFs saw their third-highest daily inflow of $870 million as the cryptocurrency market regained momentum, with Bitcoin nearing its all-time high and Shiba Inu making significant gains.

BlackRock’s IBIT Leads ETF Inflows with $629 Million

BlackRock’s IBIT emerged as the clear leader among ETF products, attracting $629 million in single-day inflows. Fidelity’s FBTC followed with $133 million, while Bitwise’s BITB added $52 million to its holdings. The combined ETF trading volume reached $4.75 billion, marking the highest level since March.

Only one ETF product recorded outflows during this period. Grayscale’s bitcoin trust (GBTC) saw $17 million in net outflows, contrasting with the broader market trend. IBIT alone accounted for $3.3 billion in trading volume, showcasing strong investor interest.

The surge in ETF activity coincided with Bitcoin’s price movement toward record territory. The leading cryptocurrency touched $73,600, coming within $150 of its all-time high. This represented a weekly gain of 7.7%, demonstrating sustained upward momentum.

Market analysts noted unusual trading patterns during this period. Bloomberg ETF analyst Eric Balchunas pointed out that high trading volumes typically occur during market downturns rather than upswings. He suggested the current scenario might indicate a “FOMO-ing frenzy,” similar to patterns seen with other ETFs in previous market cycles.

Traders Bet on Bitcoin Hitting $80,000 Amid Market Optimism

Options market data indicates rising confidence among traders, with some betting on Bitcoin reaching $80,000 by November. This optimism remains strong despite the potential volatility associated with next week’s U.S. elections.

In the broader cryptocurrency landscape, Shiba Inu (SHIB) has made notable strides, hitting a one-month high of $0.00001957. Its market capitalization has surpassed $11 billion, positioning it as the 14th largest cryptocurrency, overtaking Avalanche.

Beyond price gains, SHIB's ecosystem is showing growth. The project’s burning mechanism has seen a 450% increase in activity over 24 hours, eliminating around 52 million tokens from circulation. Furthermore, Shibarium, SHIB's layer-2 scaling solution, reported a staggering 13,500% rise in daily transactions.

Technical indicators suggest potential short-term adjustments may be on the horizon. The Relative Strength Index (RSI) for SHIB has reached 70, a level typically seen as overbought and potentially signaling a price correction.

BlackRock’s IBIT has demonstrated consistent growth over the past twelve days, accumulating $3.2 billion since October 10. This upward trend corresponds with Bitcoin’s recent performance and reflects ongoing institutional interest in regulated cryptocurrency investments.

Market participants are keeping a close eye on these developments, particularly with the upcoming U.S. elections, which historically lead to increased market volatility. However, current trading patterns indicate strong investor confidence in the crypto sector.

The total trading volume across Bitcoin ETFs has reached its highest point in six months, highlighting renewed engagement with regulated cryptocurrency products. This increase in activity aligns with positive signals in the broader crypto market.

Currently, Bitcoin is holding support above the $72,635 level, seen as a critical threshold for potential further gains. Since the April halving event, the cryptocurrency has traded within a consolidation range of $54,147 to $69,500.

VanEck’s HODL and Ark’s ARKB contributed to the day’s inflows, adding $16 million and $12 million, respectively. These figures illustrate widespread participation across various ETF providers in the current market trend.

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