Bitcoin holding strong at $67k amid solid ETF inflows

Bitcoin’s price surged past the $67,000 mark, reaching a two-month high, driven by strong spot exchange-traded fund (ETF) inflows and a rise in short liquidations. At the time of writing, Bitcoin (BTC) was up 2% in the last 24 hours, trading around $67,000. On October 15, the flagship cryptocurrency briefly surpassed $67,500 and came close to the $68,000 threshold, marking its highest price point since July.

Market Momentum and Trading Activity

Bitcoin’s market capitalization currently sits at $1.32 trillion, with a daily trading volume nearing $50 billion. The increase in trading volume reflects a surge in interest from short-term holders and traders, which could lead to greater price volatility. This uptick in volume suggests that more participants are entering the market, adding fuel to Bitcoin’s recent bullish momentum.

Spot BTC ETFs Drive Inflows

The market-wide surge coincided with three consecutive days of inflows into U.S.-based spot Bitcoin ETFs. These products have seen notable capital inflows, starting the week with $555.9 million in net inflows. On October 15, $371 million in net inflows were recorded across various ETFs, with BlackRock’s IBIT ETF leading the charge with $288.8 million in inflows. Other major contributors included Fidelity’s FBTC ($35 million), Ark Invest’s ARKB ($14.7 million), and Grayscale’s mini BTC Trust ($13.4 million).

Since the launch of spot BTC ETFs in January, these products have accumulated a total of $19.8 billion in net inflows, signaling growing investor confidence in Bitcoin as a regulated investment vehicle.

Ethereum ETFs Struggling

In contrast, Ethereum (ETH) ETFs experienced mixed performance, with $12.7 million in net outflows. Grayscale’s ETHE saw $15.3 million in outflows, while Fidelity’s FETH recorded a modest $2.6 million in inflows. The volatility in ETH products indicates more cautious investor sentiment compared to Bitcoin.

Increased Volatility Due to Short Liquidations

Bitcoin and altcoin prices are experiencing heightened volatility due to rising liquidations and short-term profit-taking. With many traders betting against Bitcoin in anticipation of a price drop, the surge above $67,000 triggered short liquidations, further amplifying the price movement. This pattern reflects the dynamic nature of the crypto market, where significant price swings can result from both institutional and retail investor activity.

Overall, Bitcoin’s strong performance, combined with the rising interest in spot BTC ETFs, suggests a growing confidence in the digital asset, even as its price remains susceptible to the volatility typically seen in the cryptocurrency market.