- The Bitcoin price is showing signs of recovery as it trades above the critical $77k.
- The current positive trend is driven by Bitcoin ETF inflows over the past five days.
- Ethereum ETFs have also recorded net inflows, highlighting growing institutional demand.
The Bitcoin price is showing fresh signs of life after a prolonged slump. This recovery is mainly driven by the increasing institutional demand for the cryptocurrency. Investors are once again putting money into spot Bitcoin ETFs, improving the sentiment surrounding BTC. With Bitcoin currently trading above $76k, the community remains eager to know whether this recovery will lead to a major breakout.
Bitcoin price sees rally as ETF demand returns
As of press time, BTC is valued at $76,809, marking a notable uptick of 22% over the last seven days. Although the Bitcoin price hit a six month-high of $78,767 earlier today, it slipped to the current value, with a 1.8% daily decline. However, the pioneer crypto is currently exhibiting an overall positive trend, positing a nearly 17% monthly increase.
This current positive trend is particularly noteworthy as it follows a long negative trend. Since BTC has fallen from its all-time high of $126 last October, the crypto has remained under pressure.
Notably, the Bitcoin price surge is driven by the significant inflows into spot BTC ETFs. While the Bitcoin ETFs exhibited a negative trend in the past, institutional interest is now back, with the fund recording net inflows for five straight days. According to SoSoValue, from August 17 to 21, Bitcoin ETFs have seen a total flow of about $1.92 billion. On August 21 alone, the funds saw net inflows of $307 million, pushing the total net inflows to $53.71 billion. BlackRock’s IBIT leads this positive trend, reporting nearly $240 million in inflows on August 21 and a remarkable $503 million on August 20.
Bitcoin Holds Firm Despite $1B Liquidation Wave
It is worth noting that if the institutional demand for BTC continues to rise, it could significantly help the Bitcoin price. Amid increasing demand, BTC could find support, pushing the price even higher.
Despite this prevailing positive sentiment, the Bitcoin price is vulnerable to potential corrections amid a massive liquidation wave. Over the past 24 hours, the crypto market has seen more than $1 billion worth of assets being wiped off from exchanges.
But the Bitcoin price is currently trading close to the $76k range despite these liquidations. Thus, it could be seen as a positive sign. Even when leveraged positions are removed, buyers continue to remain active.
However, it is still too early to call the current performance of BTC a trend reversal. The future performance of the coin will depend on key levels. If BTC manages to hold the 50% Fibonacci retracement level at $76,847 and the 38.2% level at $77,465, it could surge to new highs. On the other hand, if it drops below $75,351, the Bitcoin price may see more severe falls.
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Interestingly, the Ethereum ETFs have also exhibited demand over the past few days. Since August 17, the funds have recorded a total net inflow of nearly $700 million. This indicates that the institutional crypto demand goes beyond Bitcoin.
Related: Bitcoin Price Prediction Eyes $66,000 As ETF Inflows Return After Rough Week
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