A total of $1.7 billion has flowed into Bitcoin (BTC) since the beginning of the year, with an additional $20 million worth of institutional funds flowing in over the past few weeks alone. Additionally, there was a lot of capital inflow. This is because it shows the high demand from investors for Bitcoin.
ETF excitement fuels Bitcoin’s surge
With all the hype surrounding the possible approval of a dozen index-based spot exchange-traded funds, this is despite the fact that Bitcoin is experiencing spectacular growth. This could create a positive atmosphere among investors, who see it as a necessary incentive for traditional financial players to enter the cryptocurrency market.
Bitcoin price level bull market
The Bitcoin bull market that started in mid-October is currently showing an impressive increase of over 60%. Despite the uncertainty, it has regained significant prices last registered at the start of the bearish trend in May 2022. Nonetheless, it is important to point out that the current chart shows the price of BTC below 42,000 USD.
bitcoin price chart
Different perspectives on Bitcoin
However, not all investors are confident that Bitcoin’s value will continue to rise. Last week, $8.6 million was seen invested in Bitcoin short positions, indicating that some investors are expecting the market trend to fall. Open interest (OI) in BTC futures on global derivatives exchange CME is currently at a two-year high, reaching $5.3 billion. The upward trend began with this OI, and since then it has increased by almost 200%.
Five BTC contracts on CME Stand Futures serve as institutional indicators of digital currency gains. Therefore, influential investors are believed to be buying more shares to represent Bitcoin on behalf of large cryptocurrency holders. According to Santiment data, there were over 1,000 coin holding institutions in the second half of 2022. Essentially, this trend shows additional purchases of Bitcoin by institutions, supporting further growth of the cryptocurrency.
In total, over $43 million worth of coins have been added to the cryptocurrency market over the past 11 consecutive weeks. The positive outlook for spot ETFs has also benefited Ethereum (ETH) and the broader altcoin sector.
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