Bitcoin Price Prediction as ETFs Add $1.1B in 2 Days Despite Rising Risks

Key Insights

• Bitcoin price has soared to the highest level since January.
• Spot Bitcoin ETFs have added over $1.1 billion this month.
• The inflows are happening despite the rising risks in the market.

Bitcoin price continued its recent recovery this week, reaching its highest point since January this year. It has formed a highly bullish pattern. This pointed to more upside as spot BTC ETF inflows surge despite the elevated risks.

Bitcoin Price Boosted by Spot BTC Inflows Jump

Data shows that American investors are continuing to add to their Bitcoin ETF positions. BlackRock’s IBIT is leading the charge. These funds have added $1.16 billion in assets in the past two days. They added $532 million in assets on Monday after adding $629 million the day before.

The funds have now added assets in the last three consecutive days, paring back the outflows experienced last week. If this trend continues, it will be this consecutive month in the green.

The funds have had a cumulative inflow of $59 billion, with BlackRock’s IBIT accounting for most of this. It has over $65 billion in assets, giving it a market dominance of 61%. It is followed by funds from companies like Fidelity, Grayscale, and Bitwise.

The ongoing Bitcoin ETF inflows have coincided with the buying by whales and the rising futures open interest. This interest jumped to over $63 billion, the highest level since February this year. It has jumped gradually after bottoming below $40 billion earlier this year.

The rising futures open interest is a sign that investors anticipate that the price will recover this year.

Bitcoin is Rising Amid Safe-Haven Bets

The ongoing Bitcoin price rally has coincided with the selling of gold ETFs. With this, the popular GLD and IAU funds have lost billions of dollars in assets this year.

There are signs that investors are taking Bitcoin as a safe-haven asset. For one, the inflows have jumped since the Iran war started in February this year. Also, Bitcoin, which is often seen as a risky asset, has not crashed amid the war.

For example, Bitcoin jumped on Monday as Iran and the US engaged in the Middle East. That put the ongoing ceasefire at risk. Iran claimed to have struck an American warship that attempted to cross the Strait of Hormuz.

As a result, crude oil prices surged as investors predicted the restart of combat operations in the region. Brent jumped to $115, while the West Texas Intermediate (WTI) rose to $107.

There is a possibility that the two sides will start fighting. This will lead to significant destruction of energy infrastructure in the region. Such a move would push crude oil prices much higher, triggering a surge in inflation.

The most recent data revealed that US consumer inflation jumped to 3.3% in April. This trend may continue if energy prices rise. Indeed, the average gas price in the US has jumped to $4.2, with diesel nearing the key level of $6.

The soaring inflation will push the Federal Reserve to respond, potentially by hiking interest rates in the coming meetings.

Bitcoin Price Prediction: Technical Analysis

Technicals suggest that the BTC price may continue rising in the coming days or weeks. It has formed an ascending triangle pattern and has already moved above it. This is a common bullish continuation sign in technical analysis.

The coin has already jumped above the 23.66 Fibonacci Retracement level. Also, it jumped above the 50-day Exponential Moving Average (EMA), confirming the bullish outlook.

The coin has rallied above the Parabolic SAR indicator and the Relative Strength Index (RSI). At the same time, the Relative Strength Index (RSI) has jumped and is nearing the overbought level of 70.

Therefore, the most likely Bitcoin price prediction is bullish, with the initial target being at $90,000. A move above that price signals that bulls remain in the market. These buyers actively push the price higher toward a potential $100k target.

The post Bitcoin Price Prediction as ETFs Add $1.1B in 2 Days Despite Rising Risks appeared first on The Market Periodical.