Bitcoin ETFs hit $1b weekly inflows, analysts expect FOMO-driven rally

Liquidity flowing into spot Bitcoin exchange-traded funds (ETFs) has surpassed $1 billion this week, as analysts predict a potential new all-time high for Bitcoin within the next three months.

For the first time since July, weekly inflows into spot Bitcoin ETFs exceeded the billion-dollar mark, totaling $1.11 billion. This surge has pushed cumulative net inflows across the 12 offerings to $18.8 billion, marking a new all-time high, according to data from SoSoValue.

Notably, a significant portion of these inflows—$494.27 million—was recorded on September 27, primarily driven by ARK 21Shares’ ARKB. Only four of the twelve offerings saw no inflows during this period.

• ARK 21Shares’ ARKB: $203.07 million
• Fidelity’s FBTC: $123.61 million
• BlackRock’s IBIT: $110.82 million (continuing a five-day inflow streak)
• Grayscale’s GBTC: $26.15 million (its first inflow since September 16)
• Bitwise’s BITB: $12.91 million (fourth straight day of positive inflows)
• VanEck’s HODL: $11.17 million
• Invesco’s BTCO: $3.28 million
• Valkyrie’s BRRR: $3.26 million
• Franklin Templeton’s EZBC, WisdomTree’s BTCW, Grayscale Bitcoin Mini Trust, and Hashdex’s DEFI: No flows

Analysts Brace for a Bullish Q4

The uptick in inflows coincided with Bitcoin breaking past a key resistance level at $65,000, which some analysts believe could trigger a wave of FOMO-driven buying, potentially setting the stage for a run toward new all-time highs.

Markus Thielen from 10X Research noted that Bitcoin’s recent breakout above $65,000 is a major catalyst for a potential Q4 rally. He anticipates this move could push Bitcoin toward $70,000 and set the stage for new highs sooner than expected.

Thielen pointed out that nearly $10 billion in stablecoin minting following the Fed’s July meeting has flooded the market with liquidity, further fueling bullish sentiment. He also highlighted that 55% of mined Bitcoins currently come from Chinese mining pools, and the country’s recent monetary and fiscal stimulus measures could lead to significant capital outflows into cryptocurrencies.

“The likelihood of a Q4 rally is exceptionally high, with gains likely front-loaded. A major surge could be on the horizon, sparking even more FOMO across the crypto space,” Thielen stated.

Growing Investor Interest

Echoing this optimistic outlook, Matt Mena of 21Shares remarked that Bitcoin’s surge past $65,000 is already igniting strong interest among investors. He noted that lower-than-expected inflation data and the recent rate cut have fostered optimism for a more accommodative Fed, creating an ideal environment for Bitcoin’s continued ascent.

As more investors turn to crypto, Mena sees Bitcoin poised for a retest of the $68,000 to $70,000 range. He encouraged retail investors to increase their exposure to risk assets, especially given Bitcoin’s historical tendency to rally during halving years.

On social media, one trader even suggested Bitcoin could reach $124,000 by the end of 2024, citing historical data showing an average Q4 return of nearly 89% following a positive September.

The Bitcoin Fear and Greed Index has surged to 64, rebounding sharply from an August low of 17, signaling strong market optimism. Currently, Bitcoin is trading at $65,757, reflecting over 4% gains for the week and 11.18% for the month, its best performance since March. The cryptocurrency is just 10.8% away from its all-time high reached in March 2024.