Institutional Investors Pour $942 Million Into Bitcoin, Will This Trigger A Rally To $80,000?
Institutional investors are doubling their bets on Bitcoin, with investment funds related to the flagship crypto recording massive inflows last week. This development signals a bullish sentiment among these investors which could trigger a Bitcoin rally to $80,000.
Bitcoin Investment Funds Record $942 Million In Inflows
According to CoinShares latest weekly report, Bitcoin investment products recorded a net inflow of $942 million. These inflows are said to have been an immediate response to the lower-than-expected CPI report on Wednesday, with 89% of the total flows coming in the latter three trading days of last week.
The Consumer Price Index (CPI) inflation data, which came in lower than expected, is believed to have restored investors confidence in the market. The data showed that inflation in the US may be slowing, raising the prospect of the Federal Reserve cutting interest rates. Lower interest rates are good for the crypto market since they will make investors more willing to invest in risk assets like Bitcoin.
The US accounted for most of the inflows into BTC, with $1 billion flowing into US Spot Bitcoin ETFs last week. Grayscales Bitcoin Trust (GBTC), which has recorded over $16 billion in outflows since the ETF approval in January, also saw inflows (for the first time) of $18 million last week.
This trend of significant inflows into these Spot Bitcoin ETFs likely continues this week. Farside investors revealed in an X (formerly Twitter) post that these funds recorded a net inflow of $237.2 million on May 20. Interestingly, none of these Spot Bitcoin ETFs saw outflows on the day, with GBTC recording an inflow of $9.3 million.
It is also worth noting that while BTC saw inflows of $942 million, there were almost no flows into short Bitcoin, with CoinShares noting that this implies a positive outlook amongst investors. Altcoins like 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.
BTCs Bull Run Might Be Back On
With the Spot Bitcoin ETFs again seeing impressive demand and recording significant inflows, there is a feeling that Bitcoins bull run might be in full force. These investment funds were known to have contributed significantly to the flagship cryptos hitting a new all-time high (ATH) of $73,750 in March.
Therefore, these funds could again spark another rally for Bitcoin, sending it to $80,000 and beyond. Besides the Spot Bitcoin ETFs, other factors contribute to a bullish continuation for BTC. One is the macroeconomic data, which shows that the economic situation in the US could be improving.
Meanwhile, from a technical analysis perspective, the worst looks over for Bitcoin with crypto analyst Rekt Capital, revealing that the crypto token has left the post-halving danger zone.
Read more: https://www.newsbtc.com/news/bitcoin/942-million-into-bitcoin-80000/
Text source: NewsBTC
