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Bitcoin Rally Fizzles Despite Over US$1 Billion in ETF Inflows
- Bitcoin briefly reached US$84,835 before retreating to US$82,802, wiping out around US$2,000 in gains within hours.
- More than 90,000 traders were liquidated over 24 hours, with losses totalling US$349.72 million, including US$129.13 million in Bitcoin positions.
- Glassnode identified US$87,500 as a key upside level, while a close below US$80,000 could bring US$77,600 into focus.
- US spot Bitcoin ETFs attracted over US$1 billion in net inflows this week, with BlackRock’s IBIT accounting for approximately US$930 million.
Bitcoin had been eyeing the US$85K (AU$121.1K) mark as the coin topped out at US$84,835 (AU$120,929) in the wee hours Australian time. It has since erased all its gains and currently trades at US$82,802 (AU$118,031), a similar level to 24 hours ago.
That has wiped out US$2K (AU$2.85K) in just a couple of hours. With the price swings, traders on both sides of the market have been caught out.
Data from CoinGlass shows that over 90,000 traders have been liquidated over the past 24 hours, with a total liquidation volume of US$349.72 million (AU$498.51 million). Short liquidations accounted for 53.6% of the total. Bitcoin liquidations amounted to US$129.13 million (AU$184.07 million), with shorts accounting for 60.1%.
The next big events the market is watching out for are the Fed meeting on 27–28 October and MSCI’s list of index removals, due on 11 November. As reported, Saylor’s Strategy could be axed from the list. However, Saylor said he wasn’t worried about a removal.
Related: Switzerland Approves First Retail Bitcoin ETF Under Domestic Fund Rules
In a report published on Wednesday, Glassnode researchers described Bitcoin as “still boxed in”. Their analysts outlined the key price levels that could determine Bitcoin’s next move.
A daily close above $87.5K, with ETF inflows repeating on rising volume, would show demand absorbing that supply. A daily close below $80K would put the average ETF and treasury holder at a loss and bring the True Market Mean near $77.6K into view.
Glassnode IBIT Inflows Reach Nearly US$1 Billion Over Three Days
US spot Bitcoin ETF flows have indeed recovered somewhat. Farside data shows that over US$1 billion (AU$1.42 billion) in net inflows has been recorded so far this week.
Monday’s US$526.7 million (AU$750.8 million) was followed by US$23.2 million (AU$33.07 million) on Tuesday and US$524.8 million (AU$748.11 million) on Wednesday.
While Fidelity’s FBTC saw net outflows on Monday and Bitwise’s BITB on Tuesday, no fund reported net outflows on Wednesday.
BlackRock’s IBIT took in the lion’s share again with just under US$1 billion in net inflows: US$665.2 million (AU$948.11 million) on Monday, US$29.9 million (AU$42.62 million) on Tuesday and US$235 million (AU$335 million) on Wednesday.
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Related: BlackRock Makes a Splash with New Bitcoin ETF Filing as IBIT Takes in US$665M
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
