Bitcoin: ETFs and China pushing demand?

What changes in markets

Bitcoin ‘s run above the $60,000 mark on the back of the recent U.S. interest rate cut appears to be gaining momentum. This is evidenced, first and foremost, by new record inflows into the BTC spot ETFs, which in the last day alone recorded revenues in excess of $100m, for five consecutive rounds of net-inflow. But even at the “macro” level several factors could help BTC, now struggling to prove a rally above $63k.

Indeed, the news of the day concerns China’s intention to make a massive capital injection ($142 billion) into its state-owned banks to support the country’s struggling economy. Nothing directly related to Bitcoin, let’s be clear, but something that could certainly benefit the market for “risky” assets, and therefore also the crypto world.

The Fed’s decisions, in the U.S., will certainly have a greater impact on the asset, but a global trend that sees new monetary policy strategies emerging aimed at reviving struggling economies and thus encouraging investors should not be underestimated.

In the institutional world, at any rate, the signal seems to have been picked up, and it cannot be ruled out that the brilliant performance of ETFs (with 30-day net holdings back in the positive) finds its causes precisely in this.

#Bitcoin spot ETF demand has rebounded, with the 30-day net change in total holdings turning positive. pic.twitter.com/c0C8BaFPDq

— Ki Young Ju (@ki_young_ju) September 26, 2024