Is This Behind BTC Price Rally?

Yesterday was a very special day for the Bitcoin ETF market, as it saw a massive inflow of $555.90 million. Notably, on the same day, the price of Bitcoin jumped from $62,890 to $66,082, marking an impressive surge of nearly 5.07%. Was this a casual coincidence? Not many believe so. 

Massive Inflows into US Bitcoin ETFs

The Bitcoin Spot ETF Net Inflow data shows that the market witnessed +555.90M inflow last day. 

A post on X by Spot On Chain states that the inflow experienced on October 14 in the Bitcoin ETF market was the largest net inflow since June 5, 2024, and the eighth largest since the launch of BTC ETFs. 

Bitcoin’s Price Rebound

In the last 24 hours, the Bitcoin market has seen a surge of 2.3%. Yesterday, the BTC market opened at around $62,874.37. By the time it reached the close, it had risen nearly 5.07% to $66,082.47. At present, the market is trading at a price of $65,351.86, slightly lower than the closing price of yesterday. The market appears slightly bearish right now. In the last hour, a slight drop of 0.3% was experienced.    

Bitcoin Institutional Holdings Analysis

There are around 11 Bitcoin Spot ETFs. iShares Bitcoin Trust (IBIT), Grayscale Bitcoin Trust (GBTC), Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), and Bitwise Bitcoin ETF (BITB) are the top five Bitcoin spot ETFs by Asset Under Management. Of these five, at least three, FBTC, ARKB, and BITB, have recorded a rise in their BTC holdings in the last 24-hours. ARKB has recorded the highest rise of 5.07%, while BITB and FBTC have reported +3.84% and +2.00%, respectively.

Notably, in the last seven days, almost all the eleven BTC Spot ETFs have recorded a rise in their BTC holdings, except GBTC and BTC. As against the general trend, Grayscale Bitcoin Trust and Grayscale Bitcoin Mini Trust have registered a -0.40% and -1.05% fall in holdings over the last seven days. Interestingly, Invesco Galaxy Bitcoin ETF is the one which has reported the highest 7-day rise in BTC holdings at 6.03%. 

In conclusion, the increasing BTC holdings by Bitcoin ETFs reflects growing investor confidence in the future growth of the Bitcoin market. The four-hour chart of BTC shows that the second candlestick of the day pulled the price much lower than the last candlestick of the previous day. Currently, the third candlestick is trying to push the price upwards. It is crucial to watch whether it can cover the loss the market suffered in the previous candlestick. 

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