Crypto Fund Inflows and Bitcoin Price Sway
Take a Peek into Weekly Trends
Inflow of $2B into cryptocurrency funds; potential for Bitcoin price surge to $100,000?
Crypto funds have experienced a whopping $2 billion influx in the recent week, accoring to CoinShares' weekly report, bringing the two-week total to $5.4 billion. This seems to be a continuing trend, but will it persist as we approach the Fed rate decision?
Big Names Headlining Gains
Bitcoin [BTC] funds emerged as the frontrunners last week, securing a staggering $1.84 billion. Ethereum [ETH] followed closely, logging $149 million in inflows.
Source: CoinShares
Meanwhile, XRP lined up the altcoin leaderboard this week. It managed $10.5 million, a slight dip from the previous week's $31.6 million. Conversely, Solana's [SOL] demand rose significantly from the prior week's $5.7 million in outflows to $6 million. Interestingly, Sui's inflows dropped drastically from $20 million to less than $0.5 million.
The Fed's Decision: hovering on the Horizon
With the Fed rate decision looming, Bitcoin's price touched $98k, only to slip 4% to $94k at the time of writing. The upcoming Fed announcement will significantly impact both the market's direction and Bitcoin's demand this week.
Source: BTC/USDT, TradingView
Bitcoin appears to be heading towards the $92k range low and support. If the price action manages to stay above the previous range-low and key moving averages, it may still aim for the $100k milestone. However, a sustained dip below $92k and the moving averages could derail the $100k projections.
Factors Affecting the Trend
Bitcoin's price can be unpredictable around major economic announcements. Historical data reveals that surprising shifts in monetary policy can trigger sharp Bitcoin price movements. If the Fed maintains or increases rates more moderately, it could buoy investor spirits, potentially boosting Bitcoin prices. In contrast, aggressive rate hikes might deter investors across all asset categories.
Institutional Demand: A Bullish Signal
Institutional investment in Bitcoin, such as significant inflows into Bitcoin ETFs, conveys sustained confidence in Bitcoin, even amid broader economic uncertainties. This confidence might help either maintain or push Bitcoin prices upward in the wake of the current economic volatility.
- Despite Solana's [SOL] recent significant demand increase, it still trails behind the inflows recorded by Bitcoin [BTC] funds.
- Crypto finance is witnessing a tremendous flow of funds, with $2 billion pouring into crypto funds in the last week alone, according to CoinShares' weekly report.
- The rise in Solana's demand and the impressive crypto fund inflows might be boosting the overall confidence of investors in technology-based finance.
- This week, XRP, the altcoin leaderboard's frontrunner, had slightly lower inflows compared to the previous week, with $10.5 million compared to $31.6 million.
- In terms of ETFs, investments in Bitcoin ETFs are reflecting institutional confidence in the crypto market, which could further influence Bitcoin's price trends.
- Ethereum [ETH], in competition with Bitcoin, posted impressive inflows last week, with $149 million, a noteworthy figure in the world of crypto finance.
- As the Fed's decision approaches, the price of Bitcoin [BTC] touched $98k but saw a 4% drop to $94k, highlighting the significant impact of economic announcements on the crypto market.
- With the Fed's decision looming on the horizon, potential impacts on both the market direction and Bitcoin's demand this week are under scrutiny, as a moderately maintained or increased rate could buoy investor spirits and potentially boost Bitcoin prices.
