Bitcoin Hits $64K Mark Once Again, U.S. and Hong Kong ETFs Witness Strong Inflows
Summary:
Bitcoin (BTC) surpassed $64,000 on May 7, triggering liquidity on both sides of the order book. The U.S. spot Bitcoin exchange-traded funds (ETFs) had strong inflows on May 6, with all ten spot ETFs experiencing neutral to positive flows totaling $217 million. Highlighting the increased spot buyer demand, the Bitcoin market continues to distinguish itself from trends seen in 2021. Notably, the volume of inflows into the newly launched Hong Kong spot ETFs remains steady.
On May 7, Bitcoin (BTC) once again surged past $64,000, as liquidity was extracted from both ends of the order book. This information was gathered from Cointelegraph Markets Pro and TradingView, which tracked the trajectory of BTC price from its daily low of $62,864 on Bitstamp. Despite remaining within a trading range since May 3, BTC/USD remained unpredictable, forcing rapid position liquidations with sharp market movements. After daily trading ended, around $63,500 in bid liquidity was extracted, prompting Bitcoin to counterattack a larger liquidity pool approximately $1,000 higher, according to data from CoinGlass.
Analysing the recent market fluctuations, known trader Daan Crypto Trades observed that the CME futures gap over the weekend was already sealed. "It took a bit of time following the futures reopening, but we got there by Monday — an occurrence we often see," he partially commented on the X platform (previously Twitter).
Simultaneously, another trader, Skew, underscored essential points to bear in mind moving forward. "At the moment, the price is hovering around $64K," he shared during his latest market overview. He highlighted that it's crucial to monitor monthly open and the $61K as market demand, with a high timeframe pivot of $67k.
Skew went further to expose that the rebound from near two-month lows of around $58,000 distinguishes this bull market from 2021's when Bitcoin first attacked the same level, and the reason is increased spot buyer demand.
Speaking of demand, May 6 was a strong day for inflows into the U.S. spot Bitcoin exchange-traded funds (ETFs). Data from UK-based investment company Farside and other sources found that all ten spot ETFs, including the Grayscale Bitcoin Trust (GBTC), experienced either neutral or inflows amounting to $217 million.
Inflows into GBTC resumed for the first time since its transformation into an ETF on May 3. WhalePanda, a notable commentator, noted in response that "as long as inflows remain positive, the supply is being absorbed, indicating an overall bullish trend." Additionally, WhalePanda noted stable inflows into the newly launched HongKong spot ETFs, marked by a consistent volume of $8-9 million.
Please note: This article does not provide investment advice or recommendations. Every investment and trade involves risk, and readers should conduct independent research before making a decision.
Published At
5/7/2024 12:21:04 PM
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