Bitfinex analysts believe that a streak of spot Bitcoin exchange-traded fund (ETF) inflows could help support the price of BTC, despite a decline in spot buyer demand. The analysts stated in a report on September 23 that sustained ETF inflows could counter their prediction of short-term price consolidation due to the decrease in Bitcoin purchases on crypto exchanges. They explained that with buying in the Bitcoin spot market slowing down, BTC is expected to trade within a range in the near future.
In a surprising turn of events for a typically bearish month, spot Bitcoin ETFs recorded total cumulative inflows of $136 million on September 24, marking a four-day streak of positive inflows, according to Farside data. Since its launch in January, spot Bitcoin ETFs have seen a total of $17.84 billion in inflows, making September the worst month for Bitcoin, with an average monthly loss of 4.49% over the past 11 years, according to CoinGlass data. Despite this, Bitcoin’s price has increased by approximately 6.26% since September 18, trading at $63,713, according to TradingView data.
In the same period, Bitcoin’s dominance in the total crypto market cap has decreased by 1.35%, now standing at 57.62%, according to TradingView data. Bitfinex analysts suggested that if ETF inflows remain positive and traditional finance markets like the S&P 500 continue to rally, Bitcoin could experience further upside.
However, if spot buyer demand does not return, the most likely scenario is that Bitcoin’s price will consolidate or experience a partial correction without sustained spot buying. The upcoming November United States presidential election is expected to play a crucial role in determining Bitcoin’s future price direction, according to industry experts. Despite this uncertainty, some leaders in the industry anticipate that Bitcoin will reach six figures within the next twelve months, regardless of the election outcome.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and take appropriate risks when making investment and trading decisions.