Bitcoin nears $69K mark amid strong ETF inflows and short liquidations

Bitcoin surged toward a two-month high of $69,000, driven by substantial inflows into spot exchange-traded funds (ETFs) and a sharp increase in short liquidations.

As of press time, Bitcoin (BTC) was trading around $67,739, up 0.6% in the past 24 hours, with a market capitalization of approximately $1.33 trillion. The digital asset’s daily trading volume was close to $30 billion, reflecting strong market activity.

Short Liquidations Fuel Price Rally

According to Coinglass data, short liquidations played a pivotal role in Bitcoin’s recent price surge. In the past 24 hours, Bitcoin short liquidations totaled $17.91 million, surpassing the $11.8 million in long liquidations. This trend is a common market dynamic: when short positions are liquidated, traders are forced to buy back Bitcoin to cover their positions, which creates upward price pressure and additional buying demand.

Strong ETF Inflows Boost Sentiment

In addition to short liquidations, strong inflows into U.S.-based spot Bitcoin ETFs have helped fuel Bitcoin’s rise. Over the past week, these ETFs saw five consecutive days of net inflows, totaling over $2.12 billion. This momentum carried into the start of the week, with $294.29 million in new inflows.

On October 24, SoSoValue data revealed that spot Bitcoin ETFs saw net inflows of $188.11 million, led by BlackRock’s IBIT ETF, which recorded an inflow of $165.54 million. This marked the ninth consecutive day of inflows into BlackRock’s ETF, with the fund accumulating nearly $2 billion in that span.

Meanwhile, Bitwise’s BITB ETF contributed $29.63 million in inflows, though it had experienced an outflow of $25.2 million the previous day. Conversely, Grayscale’s GBTC ETF saw $7.05 million in outflows, continuing a trend of over $20 billion in outflows from the fund since its inception.

Since the launch of the first spot Bitcoin ETFs in January, the 12 available products have collectively garnered $21.53 billion in net inflows—a major milestone, as noted by Bloomberg ETF analyst Eric Balchunas. He highlighted the rarity of this achievement, noting that gold ETFs took five years to reach the same level of net inflows, underscoring the growing institutional demand for Bitcoin.

Political Factors Impacting Bitcoin Sentiment

In addition to market factors, political developments in the U.S. are also influencing Bitcoin’s price action. Speculation about a potential Donald Trump victory in the upcoming presidential election has sparked optimism among Bitcoin investors, who see a pro-crypto administration as likely to foster blockchain innovation and reduce regulatory hurdles.

Trump’s stance on cryptocurrency, which includes advocating for a more blockchain-friendly regulatory environment and potentially replacing SEC Chair Gary Gensler, aligns with the interests of many institutional investors who favor reduced regulatory oversight. This potential shift in regulatory policy has provided an additional boost to Bitcoin’s price, as it could create a more favorable environment for cryptocurrency growth and investment.

Overall, the combination of strong ETF inflows, significant short liquidations, and the anticipation of favorable political shifts is contributing to Bitcoin’s bullish momentum.