Bitcoin ETFs Experience Five Days of Inflows as Prices Rise Above $93k

Bitcoin ETFs hit 5-day inflow streak as price climbs back above $93k.

U.S. Bitcoin exchange-traded funds (ETFs) have seen significant inflows over the past five days, marking a recovery for Bitcoin's price, which has surged back above $93,000. This increase is attributed to a combination of positive economic indicators and renewed interest from institutional investors.

Key Takeaways

Bitcoin ETFs recorded $58.5 million in net inflows on December 2, 2023, marking five consecutive days of positive demand.
BlackRock’s IBIT led with $120.1 million in inflows, while ARK 21Shares experienced a $90.4 million outflow.
Overall, Bitcoin has rebounded significantly by 11.4% since its drop on December 1, now trading at around $93,558.
Analysts suggest potential for further price increases, with observations of bullish patterns and indicators in Bitcoin's trading charts.

Bitcoin ETF Inflows and Price Recovery

Bitcoin ETFs in the U.S. are back on the upswing, exhibiting their fifth consecutive day of inflows as Bitcoin's price has risen to nearly $94,000, its highest point in about two weeks. Data from SoSoValue indicates that the 12 spot Bitcoin ETFs saw a total of $58.5 million in net inflows on December 2, led by BlackRock’s IBIT, which attracted $120.1 million. Fidelity’s FBTC and Biwise’s BITB followed with $21.8 million and $7.4 million in inflows, respectively. However, ARK 21Shares’ ARKB faced a substantial outflow of $90.4 million, while the other Bitcoin ETFs reported no flows.

These inflows signal renewed interest in Bitcoin, amassing a total of $288 million over this five-day stretch, following a period of four weeks where nearly $4.5 billion was withdrawn from these funds. This renewed interest from institutional investors comes on the heels of recent U.S. economic data reflecting softer inflation and a cooling labor market, raising expectations for a potential Federal Reserve rate cut in December. Notably, key figures from the Fed, including New York Fed President John Williams and Fed Governor Christopher Waller, have expressed support for this rate cut.

As of now, Polymarket data suggests that the odds of a Fed rate cut during the December 15-16 meeting stand at an impressive 93%, a significant increase from 50% at the end of November. Typically, cryptocurrencies and their related ETFs perform well during periods of lower interest rates and heightened market risk appetite.

Positive Market Sentiment Drives Interest

Recent bullish developments across the market have contributed to a revitalized macro sentiment. Investment powerhouse Vanguard has announced its plans to offer crypto ETFs and mutual funds to its expansive retail customer base. This news was followed by U.S. SEC Chairman Paul Atkins confirming that a much-anticipated “innovation exemption” framework for digital asset firms is in progress and expected to be finalized by 2026.

The gradual return of risk sentiment, bolstered by these optimistic developments, may encourage institutional investors who had previously been hesitant to re-enter the cryptocurrency market, potentially adding more momentum to Bitcoin’s ongoing recovery.

In the last 24 hours, Bitcoin reached an impressive intraday high of $93,929, marking an increase of 11.4% from its previous low during its drop on December 1. At the time of writing, Bitcoin trades at approximately $93,558, which remains 25.8% lower than its all-time high of $126,080 recorded in October.

Analysts Predict Further Price Growth

Some market experts are optimistic about Bitcoin's future, with speculation of further upside as the holiday season approaches. On December 2, analyst Alex Wacy shared insights on X, pointing out a potential double bottom pattern forming on the 4-hour chart. He suggested that a strong resurgence above $100,000 could be forthcoming, stating, “They tried to shake you out. They failed. Manipulation’s over. Now we send it back to $100,000+,” alongside a chart.

Another analyst, Gert van Lagen, also suggested a short-term bullish outlook. He noted that Bitcoin’s monthly Bollinger Band Width had dipped below 100 and indicated a green signal—a pattern that historically foreshadows a sharp upward breakout. “Historically, every time this triggers, Bitcoin follows with a direct parabolic leg up,” he noted.