Bitcoin has once again captured the attention of investors as it nears the $69,000 mark, fueled by strong inflows into spot exchange-traded funds (ETFs) and a surge in short liquidations. The leading cryptocurrency, Bitcoin (BTC), was trading at approximately $67,739 at the time of writing, marking a 0.6% increase in the past 24 hours. Its market capitalization stands at around $1.33 trillion, with a daily trading volume close to $30 billion.
Data from Coinglass reveals that short liquidations have played a crucial role in driving Bitcoin’s recent upward movement. Over the past day, short liquidations amounted to $17.91 million, surpassing long liquidations at $11.8 million. This shift in market dynamics, where the forced covering of short positions increases demand, has pushed Bitcoin’s price higher and created additional buying pressure.
In addition to the market-driven liquidations, inflows into U.S.-based spot Bitcoin ETFs have reached significant levels. In the past week, these ETFs reported five consecutive days of net inflows totaling more than $2.12 billion. This trend continued into the current week, with fresh inflows of $294.29 million. On October 24, data from SoSoValue showed that spot Bitcoin ETFs received net inflows of $188.11 million, with BlackRock’s IBIT ETF leading the way with an inflow of $165.54 million. This marks the ninth consecutive day of inflows into BlackRock’s ETF, accumulating nearly $2 billion in that period alone.
Bitwise’s BITB ETF also contributed to the inflows with $29.63 million, despite experiencing an outflow of $25.2 million the previous day. However, Grayscale’s GBTC ETF saw outflows of $7.05 million, continuing a trend that has seen over $20 billion leave the fund since its inception. Since the introduction of the initial spot Bitcoin ETFs in January, the 12 available products have amassed $21.53 billion in net inflows, a milestone described by Bloomberg ETF analyst Eric Balchunas as “the most difficult metric” to achieve in the ETF landscape.
Apart from market activity, the political landscape in the United States is also impacting investor sentiment. Speculation about a potential win for Donald Trump in the upcoming presidential election has boosted optimism among Bitcoin investors. A pro-crypto administration is seen as likely to enhance blockchain innovation and reduce regulatory obstacles, aligning with institutional investors’ interests in reduced regulatory oversight. This potential shift has further fueled Bitcoin’s price momentum, as it could pave the way for a regulatory environment conducive to cryptocurrency growth.
Overall, Bitcoin’s surge towards the $69,000 mark reflects a combination of strong ETF inflows, short liquidations, and positive political developments that are shaping the cryptocurrency market landscape. Investors continue to closely monitor these factors as they navigate the evolving dynamics of the digital asset space.